Is it possible that Buona may receive rebates from suppliers in the future?

According to Buona's 2025 Franchise Disclosure Document, Buona may receive rebates from suppliers in the future. While currently no approved suppliers pay rebates to Buona based on franchisee purchases, Buona explicitly states that it may receive rebates from suppliers in the future.

This potential for future rebates suggests that Buona may seek to increase its revenue streams by negotiating such arrangements with its approved suppliers. For a prospective franchisee, this has a few implications. First, it means that Buona could potentially benefit financially from the franchisee's purchases from approved suppliers. Second, it highlights the importance of understanding the approved supplier list and any potential changes to it, as these changes could be influenced by rebate agreements.

It is common practice in franchising for franchisors to receive rebates or other forms of compensation from suppliers based on franchisee purchases. This practice is usually disclosed in the FDD, as it represents a potential conflict of interest if the franchisor is incentivized to steer franchisees towards certain suppliers, even if those suppliers don't offer the best prices or quality. Franchisees should inquire about the criteria Buona uses for selecting and approving suppliers, and how these decisions might be affected by potential rebate agreements.