When are the Lease, Utility and Security Deposits due for a Buona inline single brand franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
ated architect to plan the layout and required improvements for the leased premises.
(3) Lease Deposits and Rent These figures presume that you will be leasing your premises. Generally, you will need to lease a site of approximately 2,800 to 3,700 square feet. We may allow or require variations to typical size parameters under certain circumstances. Your landlord will typically require a security deposit equal to one or two months' rent and may, also, require payment in advance of the first and/or last (or more) month's rent. These figures provide the estimated amount of the security deposit for a location meeting our typical size requirements. The expense of leasing will vary depending upon the size of the premises, its location (for example, downtown, mall, suburban or rural), landlord contributions and the requirements of individual landlords. The lease rental payments shown in the charts above includes 3 months' rent (including CAM, taxes and insurance) for your initial period of operation. The estimate assumes that the landlord will not charge rent until the Buona Business opens.
(4) Leasehold Improvements- The cost of leasehold improvements will vary depending on numerous factors including the size and configuration of the premises and pre-construction and construction costs. The low end of this range presumes that (i) the premises was formerly used as a restaurant and therefore the space is finished and outfitted with many of the fixtures necessary for the operation of a Buona Business and/or (ii) your landlord will provide a partial build-out allowance.
(5) Travel and Living Costs While Training We cover the cost of the initial training program, but you will be responsible for the travel, lodging, meals and other living expenses of your owner and managers while attending the initial training program.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–32)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the timing of lease, utility, and security deposits for an inline single brand franchise are as follows: Lease deposits and rent are typically required when leasing the premises. The landlord will usually require a security deposit, which could be equal to one or two months' rent. They might also ask for advance payment of the first and/or last month's rent, or even more. The FDD includes an estimated amount for the security deposit based on typical size requirements. The estimate also includes three months' rent, covering CAM, taxes, and insurance, for the initial operating period, assuming the landlord doesn't charge rent until the Buona business opens.
For utility deposits, the FDD mentions that miscellaneous expenses include utility deposits. However, it does not specify the exact timing for when these deposits are due.
In general, the FDD indicates that certain expenses, including grand opening advertising and marketing, must be spent starting 60 days prior to opening and within the first 90 days after opening. It is advisable for prospective franchisees to clarify the specific due dates for utility deposits with Buona to ensure proper financial planning.