How does Buona provide Gross Sales reports to franchisees?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties acknowledge and agree that Franchisor shall have full access to Franchisee's point-of-sale system, back of house software and any other systems, software or applications as may be used by Franchisee in operating the Franchised Business in the future to retrieve Gross Sales, financial data and other information relating to the Franchised Business.
Franchisor shall provide a weekly Gross Sales report to Franchisee based on the information retrieved upon which Franchisee shall pay royalties.
Franchisor reserves the right to change the manner in which Gross Sales reports are prepared in the future.
- 4.3 Period and Quarterly Statements.
During the Term, Franchisee shall, at its expense, submit to Franchisor within twenty-one (21) days following the end of each of the thirteen (13) 4-week reporting periods of Franchisor ("Periods"), a statement providing certain sales and other financial data in a form and format as Franchisor may reasonably require ("Period Statement") together with a certificate executed by Franchisee or an officer of Franchisee stating that such financial statement is true and accurate.
During the Term, Franchisee shall, at its expense, submit to Franchisor within twentyone (21) days following the end of each of quarter of the fiscal year, a statement providing certain sales and other financial data in a form and format as Franchisor may reasonably require ("Quarterly Statement") together with a certificate executed by Franchisee or an officer of Franchisee stating that such financial statement is true and accurate..
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona will have full access to the franchisee's point-of-sale system, back-of-house software, and any other systems used to operate the franchised business. This access allows Buona to retrieve gross sales, financial data, and other information related to the business. Based on the retrieved information, Buona will provide a weekly gross sales report to the franchisee, which will be used to calculate royalty payments. However, Buona retains the right to modify how these gross sales reports are prepared in the future.
In addition to the weekly gross sales report provided by Buona, franchisees are also required to submit their own financial statements. Franchisees must submit a Period Statement within 21 days following the end of each of the 13 four-week reporting periods. Franchisees must also submit a Quarterly Statement within 21 days following the end of each fiscal quarter. These statements must be in a format reasonably required by Buona and certified as true and accurate by the franchisee or an officer of the franchisee.
These reporting requirements ensure that Buona has access to comprehensive and up-to-date financial information from its franchisees. This allows Buona to accurately calculate royalties, monitor the financial performance of individual franchises, and maintain the integrity of the Buona system. For a prospective franchisee, this means being prepared to grant Buona access to all relevant business systems and to diligently prepare and submit the required financial reports on a weekly, period, and quarterly basis. Failing to comply with these reporting requirements could result in penalties or other actions by Buona, as detailed elsewhere in the Franchise Agreement.