Is Buona required to provide opening assistance to franchisees?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
ade 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-Five Thousand Dollars ($25,000.00) conducting an advertising and marketing campaign to promote the grand opening of the Franchised Business and both Brands. 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 grand opening advertising and marketing shall be conducted in accordance
with the Manuals and/or other written guidelines Franchisor may issue on initial advertising and promotion.
11.4 Co-operative Advertising. Franchisee shall join and participate in any local advertising cooperative which has been or may be formed consisting of franchisees and/or Franchisor-owned or Affiliateowned Franchised Businesses in Franchisee's area or region. Franchisee agrees to contribute to the cooperative in the amount and manner agreed upon by a majority of the members of the cooperative. Contributions made by you to the cooperative will be credited to your local advertising expenditure requirements in Section 11.2 above. Each Franchised Business in the cooperative, whether franchised or company-owned or affiliate-owned, shall have one vote in the cooperative. Franchisor assumes no direct or indirect liability or obligation to Franchisee or to any local co-operative with respect to the maintenance, direction, or administration of the co-operative, including without limitation, any failure by any franchisees to make any contributions to the co-operative.
XII. INSURANCE
- 12.1 Insurance Program.
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 spend a minimum of $20,000 on advertising and marketing for the grand opening of their location. This campaign must begin 60 days prior to opening and continue for the first 90 days of operation. These funds should be used for social media, print, radio, and digital advertising, or other promotions that are mutually agreed upon by both Buona and the franchisee.
The grand opening advertising and marketing must be conducted according to the guidelines provided in the manual or other written guidelines issued by Buona. In addition to the grand opening advertising, franchisees must also spend a minimum of 1% of their gross sales on local advertising, marketing, and promotion, starting from the date the franchise opens. These expenditures are made directly by the franchisee but are subject to Buona's approval and direction.
Buona may also develop National Accounts under a National Accounts Program for specific services like catering. Franchisees have the right to decline participation in the National Accounts Program or with respect to a particular National Account. However, to participate, franchisees must comply with Buona's standards, policies, and procedures for the program and the requirements of the specific National Account. Buona retains the discretion to determine the best method for pursuing, negotiating with, and servicing National Accounts, and establishes the terms for each contract.