What is the monetary non-compliance fee for a Buona Franchisee's failure to report Gross Revenues?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 16.9 Monetary Fees for Non-Compliance. In addition to any and all other remedies available to Franchisor under this Agreement or under the law upon a default by Franchisee, Franchisor may impose on Franchisee monetary non-compliance fees for the defaults described in this Section 16.9:
- a. Failure to Report Gross Revenues. Franchisee shall pay Franchisor a f
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee may incur monetary non-compliance fees for certain defaults. Specifically, if a Buona franchisee fails to report Gross Revenues of the Franchised Business and/or Daily Flash Reports as required in Section 4.2 of the agreement by the stated deadline, they will be subject to a fee.
The non-compliance fee for failing to report Gross Revenues is $100 per day. This daily fee starts accruing on the first day after the report is due and continues each day until the franchisee corrects the default by submitting the required reports.
This fee structure serves as an incentive for Buona franchisees to adhere to the reporting requirements outlined in the franchise agreement. Consistent and timely reporting of Gross Revenues is crucial for calculating royalties and assessing the overall performance of the franchise system. The daily fee can quickly add up, making it essential for franchisees to prioritize and fulfill their reporting obligations to avoid these penalties.