Can the Buona Marketing Fund be used for market research and marketing activities?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will be entitled to direct all advertising, marketing and promotional programs financed by the Marketing Fund, with sole discretion over the creative concepts, materials, and endorsements used in them, and the geographic, market, and media placement and allocation of the programs. Franchisee agrees that the Marketing Fund may be used to pay the costs of preparing and producing video, audio, digital and written advertising materials; administering national, regional or local advertising programs including, without limitation, direct mail and other media advertising, and employing advertising agencies to assist in those activities; establishing and maintaining the Buona Website; internet-based advertising and marketing programs, developing and maintaining other presence on the Internet, including reputation management and system-wide online programs for customer ordering and loyalty rewards program; intranet development supporting public relations; market research and marketing activities; providing advertising, marketing and promotional materials to Buona Businesses; and any and all other activities for the purpose of promoting the Marks and Buona Businesses.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the Marketing Fund can be used for market research and marketing activities. Buona will direct all advertising, marketing, and promotional programs financed by the Marketing Fund, and has sole discretion over the creative concepts, materials, endorsements, geographic placement, market placement, and media allocation of the programs.
The Marketing Fund may be used to pay for various costs, including preparing and producing video, audio, digital, and written advertising materials. It can also cover the costs of administering national, regional, or local advertising programs, such as direct mail and other media advertising, and employing advertising agencies. Additionally, the fund can be used for establishing and maintaining the Buona Website, internet-based advertising and marketing programs, developing and maintaining other internet presences, including reputation management and system-wide online programs for customer ordering and loyalty rewards programs, intranet development supporting public relations, market research and marketing activities, and providing advertising, marketing, and promotional materials to Buona Businesses.
Buona franchisees benefit from the franchisor's control over the Marketing Fund because it ensures a consistent brand image and marketing strategy. However, franchisees should recognize that Buona has the discretion to allocate these funds as it sees fit, and there is no guarantee that the marketing efforts will directly benefit each franchisee's specific location or geographic area in proportion to their contribution. Franchisees are required to contribute up to 2.5% of their gross sales to the Marketing Fund, so understanding how these funds are used is an important aspect of evaluating the franchise opportunity.