What is the range of the estimated total initial investment for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
,950 | As incurred | Prior to opening | Attorneys, accountants, government agencies |#### Notes for Buona Inline Single Brand:
These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating your Buona Business. We do not offer direct or indirect financing for these items. None of the fees payable to us are refundable. Fees paid to vendors or other suppliers may or may not be refundable depending on their policies or your arrangements with them.
(1) Initial Franchise Fee Your Initial Franchise Fee is $40,000 and is payable in full when you sign the Franchise Agreement. The Initial Franchise Fee is non-refundable, except if we terminate your Franchise Agreement for your failure to successfully complete initial training in which case we will refund 10% of the Initial Franchise Fee paid upon delivery to us of an executed release.
(2) Design and Architect Fees You must engage our designated architect to plan the layout and required improvements for the leased premises.
(3) Lease Deposits and Rent These figures presume that you will be leasing your premises. Generally, you will need to lease a site of approximately 2,800 to 3,700 square feet. We may allow or require variations to typical size parameters under certain circumstances. Your landlord will typically require a security deposit equal to one or two months' rent and may, also, require payment in advance of the first and/or last (or more) month's rent. These figures provide the estimated amount of the security deposit for a location meeting our typical size requirements. The expense of leasing will vary depending upon the size of the premises, its location (for example, downtown, mall, suburban or rural), landlord contributions and the requirements of individual landlords. The lease rental payments shown in the charts above includes 3 months' rent (including CAM, taxes and insurance) for your initial period of operation. The estimate assumes that the landlord will not charge rent until the Buona Business opens.
(4) Leasehold Improvements- The cost of leasehold improvements will vary depending on numerous factors including the size and configuration of the premises and pre-construction and construction costs. The low end of this range presumes that (i) the premises was formerly used as a restaurant and therefore the space is finished and outfitted with many of the fixtures necessary for the operation of a
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–32)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the estimated initial investment for a Buona Inline Single Brand ranges from $483,500 to $1,399,000. This broad range accounts for variability in real estate costs (leasing vs. purchasing land), construction expenses, and other location-specific factors. For example, the low end of the range assumes the premises was previously a restaurant with existing fixtures or that the landlord provides a build-out allowance, reducing initial capital expenditure. Conversely, the high end reflects costs associated with new construction and raw land acquisition.
Several components contribute to this total investment. These include the initial franchise fee of $40,000, design and architect fees, lease deposits and rent, leasehold improvements, sign package, POS system, and initial inventory. Additional costs include grand opening advertising, on-site training fees, and additional funds for the first three months of operation. The FDD emphasizes that these figures are estimates, and actual costs can vary based on factors like management skills, local economic conditions, and competition.
Prospective Buona franchisees should carefully review these estimates with a business advisor, accountant, or attorney to assess their individual financial situation and local market conditions. Understanding the factors that drive costs, such as leasehold improvements and advertising expenses, is crucial for accurate budgeting. Furthermore, the FDD explicitly states that Buona does not offer direct or indirect financing, so franchisees must secure their own funding through third-party lenders. The availability and terms of financing will depend on the franchisee's creditworthiness and the lending institution's policies.