How do the operations of the 10 affiliate-owned Buona units included in the tables differ from those of a new franchised Buona business?

According to Buona's 2025 Franchise Disclosure Document, the operations of the 10 affiliate-owned Buona restaurants included in the provided tables do not materially differ from a new franchised Buona business that is a free-standing location with a drive-through window. The key difference is that the affiliate-owned units sell pizza, while new franchised Buona businesses will not. The FDD provides information on the percentage of total sales derived from pizza sales in the affiliate-owned units. This information is relevant for prospective franchisees to understand the potential impact of not selling pizza on their revenue.

It is important to note that this comparison applies specifically to free-standing locations with drive-through windows. If a franchisee is establishing an inline location without a drive-through, they should not rely on the data from these 10 affiliate-owned units. Instead, they should review the data provided regarding the one affiliate-owned unit that is an inline location. This distinction highlights the importance of considering the specific type of location when evaluating financial performance data.

Additionally, the FDD notes that the 19 affiliate-owned restaurants included in Item 19 are located in a market where the Buona name and brand have been recognized for 40 years. Franchisees establishing a unit in a new market without brand recognition may not perform as well, especially in the initial phase of the new business. Also, food and product costs for all existing affiliate-owned restaurants have been negotiated by our affiliates with manufacturers and distributors on a consolidated basis and have the benefit of volume costs for units all located within one region. New franchisees in new markets may not have the volume to negotiate favorable prices with manufacturers and distributors serving the franchisee's region which would result in higher costs for these products. The affiliate-owned restaurants do not pay royalties or other ongoing fees that franchisees will pay under the Franchise Agreement; however, the tables impute these fees.