What obligations does a Buona franchisee have regarding required purchases in Item 8, and how does this relate to the franchisor's assistance in Item 11?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Required Purchases and Designated and Approved Suppliers
You must purchase all Italian beef, Italian sausage and other ingredients and food products, beverages, packaging, equipment, signs, furniture, fixtures, point-of-sale system, software, marketing materials, marketing and promotional services, online/gift card/loyalty program services, architectural services, accounting services, construction management services, construction materials, uniforms, cleaning supplies and other materials and supplies required in the operation of the Franchised Business that are or incorporate our trade secrets or confidential information from either suppliers designated by us for some items or from suppliers approved by us, which suppliers may include us or our affiliates.
You must purchase other materials, supplies and services required for the operation of the Franchised Business solely from suppliers who demonstrate the ability to meet our standards and specifications for such item, who possess adequate quality controls and capacity to supply the needs of our franchisees
promptly and reliably and who have been approved by us in writing and such approval has not thereafter been revoked, or following our standards and specifications for such items. The Manual will contain a list of designated and approved suppliers as well as other purchasing standards and specifications.
Our affiliate Authentic Brands of Chicago, LLC is currently the only designated supplier for Italian beef and related products. Our affiliate The Buona Companies, L.L.C. is currently an approved supplier, but not the only approved supplier, of marketing materials. Our affiliate, Keystone Planning + Design, PLLC is currently the only designated supplier for design and architectural services.
You must purchase, install, maintain in sufficient supply, and use, only other equipment, computer hardware and software, signs, insurance and other products and services that conform to the standards and specifications described in the Manual or otherwise in writing. Other than the requirements above and as more specifically set forth in the Manual, you are not obligated to purchase or lease any goods, services, supplies, fixtures, equipment, inventory or real estate from us or any other specifically designated source.
Approval of alternative suppliers
If you desire to purchase any such items from an unapproved supplier, you or the supplier must submit to us a written request for approval.
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees are required to purchase specific items from designated or approved suppliers. Item 8 details that franchisees must purchase Italian beef, Italian sausage, other ingredients and food products, beverages, packaging, equipment, signs, furniture, fixtures, point-of-sale system, software, marketing materials, marketing and promotional services, online/gift card/loyalty program services, architectural services, accounting services, construction management services, construction materials, uniforms, and cleaning supplies from suppliers designated or approved by Buona. These suppliers may include Buona or its affiliates.
For other materials, supplies, and services, franchisees must use suppliers who meet Buona's standards and specifications, have adequate quality controls and capacity, and have been approved in writing by Buona. The list of designated and approved suppliers, along with purchasing standards, will be in the Manual. Currently, Authentic Brands of Chicago, LLC, a Buona affiliate, is the only designated supplier for Italian beef and related products. The Buona Companies, L.L.C., another affiliate, is an approved supplier of marketing materials, but not the only one. Keystone Planning + Design, PLLC, also an affiliate, is the only designated supplier for design and architectural services.
Item 11 outlines Buona's assistance to franchisees, including providing lists of designated and approved suppliers and purchasing standards before opening their Buona Business. This assistance ensures franchisees know where to source required items to maintain brand standards. While franchisees are responsible for site selection, Buona provides location research assistance and typical floor plans and site build-out specifications. This support helps franchisees meet the requirements for materials, equipment, and services needed for their location. Buona also retains the right to profit from sales made by its affiliates to franchisees and to receive rebates from approved suppliers.