Can the Buona Marketing Fund be used to pay for establishing and maintaining the Buona Website?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Once established, we will administer a system-wide brand marketing fund ("Marketing Fund"). You will contribute to the Marketing Fund as described in Item 6. All franchisees will contribute to the Marketing Fund on the same basis. Restaurants owned by our affiliate do not contribute to the Marketing Fund.
We 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. You agree that the Marketing Fund may be used to pay the costs of preparing and producing video, audio 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 systemwide 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. The Marketing Fund will furnish you with approved advertising, marketing and promotional materials at its direct cost of producing those materials.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–46)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the Marketing Fund can be used to pay for establishing and maintaining the Buona website. Franchisees contribute to this fund, and Buona has sole discretion over how the funds are spent on advertising, marketing, and promotional programs. Restaurants owned by Buona's affiliate do not contribute to the Marketing Fund. All franchisees contribute to the Marketing Fund on the same basis.
The FDD specifies that the Marketing Fund may cover the costs of various advertising and marketing activities. These activities include preparing and producing advertising materials, administering advertising programs, employing advertising agencies, establishing and maintaining the Buona Website, internet-based advertising and marketing programs, developing and maintaining other internet presences, intranet development, public relations, market research, providing advertising materials to Buona Businesses, and any other activities that promote the Buona brand.
This means that a portion of each franchisee's contribution to the Marketing Fund is allocated to ensure that Buona maintains an active and effective online presence. This includes not only the main website but also other online platforms and programs aimed at customer engagement and loyalty. The franchisee benefits from a system-wide marketing effort without having to manage the website and online marketing programs independently.
Buona retains control over the Marketing Fund and is not obligated to ensure that expenditures in any geographic area are proportionate to contributions from Buona Businesses in that area. Buona also assumes no direct liability to the franchisee regarding the Marketing Fund's maintenance, direction, or administration. This arrangement is typical in franchising, where the franchisor manages marketing efforts to maintain brand consistency and recognition.