What is the monetary non-compliance fee for a Buona Franchisee's failure to properly use Trade Secret Products?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
l pay Franchisor a fee of One Hundred Dollars ($100) per day, beginning on the first day after performance is due, up through and including the day the default is cured, if Franchisee is in default in the payment of royalties, Marketing Fund contribution or technology fee
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee will be charged a non-compliance fee for failing to properly use Trade Secret Products. This fee is a monetary penalty imposed by Buona for each day the franchisee does not adhere to the required standards for using these products.
The non-compliance fee for failing to properly use Trade Secret Products is $1,000 per day. This fee starts accruing from the first day the franchisee fails to comply with the requirements outlined in Section 10.3 of the franchise agreement. This daily fee continues to be charged for each subsequent day of non-compliance.
This penalty serves as a strong incentive for Buona franchisees to strictly follow the guidelines and procedures related to Trade Secret Products. It also highlights the importance Buona places on protecting its proprietary information and ensuring consistent product quality across all franchise locations. Franchisees should ensure they fully understand and comply with all requirements related to Trade Secret Products to avoid incurring these substantial daily fees.