Does Buona require franchisees to elect the same fiscal year as the franchisor?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to elect a fiscal year the same as Franchisor's fiscal year.
During the first twelve (12) months of operation, Franchisee is required to engage and use an accounting service designated by Franchisor for preparation of financial statements and financial reporting.
After the first twelve (12) months of operation, if at any time Franchisee is not in full compliance with the requirements of this Section VI., Franchisor can, by delivery of written notice, require Franchisee to once again engage and use the services of an accounting service designated by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees are required to elect the same fiscal year as Buona. This means that the franchisee's accounting period for financial reporting must align with Buona's fiscal year.
During the first 12 months of operation, Buona franchisees must use an accounting service designated by Buona for preparing financial statements and reports. After this initial period, Buona retains the right to mandate the franchisee to revert to a designated accounting service if the franchisee fails to comply with the financial reporting requirements outlined in Section VI of the franchise agreement.
Buona also requires franchisees to submit Period Statements within 21 days following the end of each of the thirteen 4-week reporting periods and Quarterly Statements within 21 days following the end of each quarter of the fiscal year. These statements must provide sales and other financial data in a format required by Buona and be certified as true and accurate by the franchisee or an officer of the franchisee. This level of control ensures that Buona can effectively monitor the financial performance of its franchises and maintain consistency in financial reporting across the system.