Can the Buona Marketing Fund be used for reputation management?
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 reputation management. Buona will direct all advertising, marketing, and promotional programs financed by the Marketing Fund and has sole discretion over the creative concepts, materials, and endorsements used in these programs.
The Marketing Fund may cover the costs of preparing and producing various advertising materials, administering advertising programs, employing advertising agencies, maintaining the Buona Website, and developing internet-based advertising and marketing programs. Specifically, the fund can be used for maintaining an internet presence, including reputation management and system-wide online programs for customer ordering and loyalty rewards programs.
This means that a portion of the franchisee's contribution to the Marketing Fund could be allocated to managing and protecting the brand's reputation online. While Buona aims to use the Marketing Fund in a way that benefits all Buona Businesses, there is no guarantee that the expenditures will be proportionate to the contributions from franchisees in any specific geographic area, or that any particular Buona Business will directly benefit in proportion to its contribution.