How often is the royalty fee for a Buona franchise payable?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Royalty.
Franchisee shall pay to Franchisor a recurring, non-refundable royalty in the amount of four percent (4%) of Gross Sales (as defined herein) during the Term, payable weekly (or on such other basis as may be set forth in the Manual or otherwise agreed to in writing by Franchisor) calculated on Gross Sales of the preceding week.
This Marketing Fund contribution is due weekly (or on such other basis as may be set forth in the Manual or otherwise agreed to in writing by Franchisor) along with the royalty fee for the Gross Sales for the preceding week.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the royalty fee is payable weekly. Specifically, the franchisee must pay a recurring royalty fee of 4% of gross sales during the term of the agreement. This royalty payment is calculated based on the gross sales of the preceding week.
In addition to the weekly royalty fee, franchisees are also required to contribute to a Marketing Fund. This contribution can be up to 2.5% of gross sales and is also due weekly, aligning with the royalty fee payment schedule. The FDD specifies that the Marketing Fund contribution is paid along with the royalty fee for the preceding week's gross sales.
It's important to note that while the standard payment schedule is weekly, the FDD allows for some flexibility. The payment basis may be altered if it is set forth in the Manual or otherwise agreed to in writing by Buona. This means that while franchisees should generally expect to make royalty and marketing fund payments on a weekly basis, there could be exceptions depending on what is outlined in the franchise operations manual or any separate written agreement with Buona.