What was the local advertising cost for the Buona dual concept at Store 18?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
588,254 17.0% | 351,923 12.7% | | | Local Advertising (16) | 48,889 | 1.0% | |---|---|---|---| | 2.5% BUONA Brand Marketing Fund | | | | | | (17) | 114,301 | 2.3% | | 2/26/24 - 2/23/25 | | | |--------------------------------------------------------------|-----------|--------| | Dual Brand | Store 18 | | | BUONA Restaurant Sales (1) | 4,264,611 | 87.2% | | BUONA Catering Sales (2) | 307,424 | 6.3% | | Rainbow Cone Sales (3) | 316,912 | 6.5% | | Total Gross Sales | 4,888,947 | 100.0% | | Food Cost (4) | 1,405,033 | 28.7% | | Packaging Cost (5) | 137,849 | 2.8% | | Gross Profit (6) | 3,346,065 | 68.4% | | Salaries & Wages (7) | 1,195,687 | 24.5% | | Employee Benefits (8) | 217,054 | 4.4% | | Direct Operating Expenses (9) | 28,988 | 0.6% | | Supplies & Chemicals (10) | 52,259 | 1.1% | | Utilities (11) | 85,702 | 1.8% | | General & Administrative (12) | 154,868 | 3.2% | | Repairs & Maintenance (13) | 36,692 | 0.8% | | Sales Incentives (14) | 206,228 | 4.2% | | Tech Fee (15) | 5,200 | 0.1% | | Local Advertising (16) | 48,889 | 1.0% | | 2.5% BUONA Brand Marketing Fund | | | | (17) | 114,301 | 2.3% | | 4.0% BUONA Royalty (18) | 182,881 | 3.7% | | 3.0% Rainbow Cone Brand Marketing | | | | Fund (19) | 9,507 | 0.2% | | 6.0% Rainbow Cone Royalty (20) | 19,015 | 0.4% | | Income (21) | 988,793 | 20.2% |
See Explanatory Notes below.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 60–75)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Store 18, a dual-brand location, spent $48,889 on local advertising. This figure represents 1.0% of the store's total gross sales. The data for Store 18 covers the period from February 26, 2024 (opening date) through February 23, 2025.
It is important to note that while the provided financial performance representation includes a line item for 'Local Advertising,' the explanatory notes clarify that the income figures do not include actual local advertising expenses, including promotional discounts done at the point of sale (POS). This means the $48,889 represents a minimum required spending, and the franchisee may have spent more on local advertising initiatives.
Prospective Buona franchisees should be aware that the FDD specifies a minimum percentage of sales that must be allocated to local advertising. However, the actual amount spent could be higher depending on the franchisee's marketing strategies and promotional activities. It is crucial for potential franchisees to understand the difference between the minimum required spending and the actual advertising expenses they may incur.
Therefore, while the FDD provides a baseline figure for local advertising expenses, franchisees should conduct their own market research and develop a comprehensive marketing plan to determine the optimal level of advertising spending for their specific location. This may involve exceeding the minimum requirement to effectively compete in their local market and drive sales growth.