factual

What is the monthly royalty fee charged by Buona, and how is it calculated?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

The Company charges a monthly royalty fee of 4%, which is computed as a percentage of the franchisee's monthly gross sales.

Source: Item 22 — CONTRACTS (FDD page 78)

What This Means (2025 FDD)

According to Buona's 2025 Franchise Disclosure Document, the company charges franchisees a monthly royalty fee of 4%. This royalty is calculated as a percentage of the franchisee's monthly gross sales.

This means that each month, a Buona franchisee must remit 4% of their total revenue to the company. Gross sales typically include all revenue generated from the restaurant, before any deductions for expenses. This ongoing royalty is a standard practice in franchising, compensating Buona for the continued use of its brand, systems, and support.

Prospective franchisees should carefully consider this ongoing expense when evaluating the potential profitability of a Buona franchise. It's important to understand what services and support Buona provides in exchange for this royalty, and to factor it into their financial projections. Franchisees should also clarify with Buona exactly what constitutes 'gross sales' for royalty calculation purposes, to ensure accurate reporting and avoid potential disputes.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.