Does Buona require franchisees to use designated software or a web-based platform for accounting?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, franchisees are required to maintain accurate books, records, and accounts following U.S. Generally Accepted Accounting Principles. Buona specifies that this must be done in a form and manner it prescribes, which may include using designated software or a web-based platform, a standard chart of accounts, and specified reporting periods to ensure uniformity across the franchise system. Buona also requires 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 financial reporting. After this initial 12-month period, if a franchisee fails to comply with the requirements outlined in Section VI of the agreement, Buona can mandate that the franchisee once again use a designated accounting service.
Furthermore, Buona has full access to the franchisee's point-of-sale system, back-of-house software, and any other systems or applications used in operating the franchised business. This access allows Buona to retrieve gross sales, financial data, and other information related to the franchised business. Franchisees must also submit period and quarterly statements with sales and financial data in a format that Buona requires.