Can Buona require franchisees to use designated software for accounting?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
s taxes collected from customers and actually paid to the appropriate taxing authority.
IV. ACCOUNTING AND RECORDS
- 4.1 Maintenance and Retention of Books and Records; Designated Accounting Services. During the Term, Franchisee shall maintain and preserve complete and accurate books, records and accounts in accordance with U.S. Generally Accepted Accounting Principles and in the form and the manner prescribed by Franchisor from time to time in the Manuals or otherwise in writing, which may include the use of designated software or a web-based platform, standard chart of accounts, and specified reporting periods for uniformity throughout the franchise system, and Franchisor access to financial data. 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.
- 4.2 Royalty Reports. 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.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona franchisees are required to maintain accurate books, records, and accounts following Generally Accepted Accounting Principles. Buona specifies that this must be done in a form and manner that they prescribe, which may include using designated software or a web-based platform. This ensures uniformity throughout the franchise system, and also allows Buona access to franchisees' financial data.
During the first year of operation, Buona franchisees must use an accounting service that Buona designates for preparing financial statements and reports. After this initial 12-month period, if a franchisee fails to comply with the requirements outlined in Section VI of the agreement, Buona can require the franchisee to once again use a designated accounting service.
Furthermore, if Buona develops a custom software program for accounting, inventory, point-of-sale, or marketing, franchisees must implement this software into their business. Franchisees must then comply with all specifications and standards that Buona prescribes regarding the software. At the time Buona requires implementation of the software, franchisees are obligated to use only the software prescribed by Buona. Franchisees may also be required to purchase, lease, or license the designated software program and compatible computer hardware, as well as contract for ongoing service, maintenance, and support at terms designated by Buona or its suppliers.