Does Buona require franchisees to get written approval for all advertising and promotional plans?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
umes no direct or indirect liability or obligation to Franchisee with respect to the maintenance, direction, or administration of the Marketing Fund.
Franchisor reserves the right, in its sole discretion, to terminate or discontinue the Marketing Fund upon thirty (30) days' notice to Franchisee. All unspent monies on the date of termination or discontinuance shall be distributed to franchisees of Franchisor in proportion to their respective contributions made to the Marketing Fund during the previous twelve (12) month period. Franchisor shall have the right to reinstate the Marketing Fund upon the same terms and conditions herein set forth upon thirty (30) days' prior written notice to Franchisee.
- 11.2 Local Advertising. Beginning on the date of opening of the Franchised Business, in addition to the requirement for Franchisee to contribute to the Marketing Fund, each Period Franchisee must spend a minimum of one percent (1%) of the Gross Sales of the Franchised Business on local advertising, marketing and promotion. Such expenditures will be made directly by Franchisee, subject to Franchisor's approval and direction. At Franchisor's request, Franchisee must furnish to Franchisor in a manner approved by Franchisor an accurate accounting of Franchisee's local advertising and marketing expenditures for each Period.
- 11.3 Grand Opening Advertising and Marketing. Beginning sixty (60) days prior to the opening of the Franchised Business and continuing through the first ninety (90) days of operation of the Franchised Business, Franchisee must spend a minimum of Twenty Thousand Dollars ($20,000.00) conducting an advertising and marketing campaign to promote the grand opening of the Franchised Business. Grand opening monies will be spent on social media, print, radio, digital advertising and/or other advertising or promotions that Franchisor and Franchisee agree is best suited for Franchisee's grand opening campaign. The gr
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees are required to obtain approval and direction from Buona for local advertising, marketing, and promotion efforts. Specifically, Item 11.2 states that franchisees must spend a minimum of one percent of gross sales on local advertising, marketing, and promotion, and that these expenditures are subject to Buona's approval and direction. This means that while franchisees have some autonomy in local advertising, Buona retains control over the brand's image and marketing strategies.
In addition to the local advertising requirement, Buona franchisees must also participate in a grand opening advertising and marketing campaign. Franchisees are required to spend a minimum of $20,000 on advertising and marketing during the 60 days prior to opening and the first 90 days of operation. This grand opening campaign must be conducted according to guidelines in the manual or other written guidelines issued by Buona.
Buona also utilizes a national marketing fund, which is administered by Buona. Buona has sole discretion over the advertising, marketing, and promotional programs financed by the marketing fund. This includes creative concepts, materials, endorsements, and the geographic, market, and media placement and allocation of the programs. Franchisees are required to contribute to this fund, as detailed in the franchise agreement. Furthermore, franchisees are required to join and participate in any local advertising cooperative that may be formed in their area, contributing in an amount agreed upon by the majority of the members. Contributions to the cooperative can be credited toward the local advertising expenditure requirements.