factual

Does Buona reserve the right to establish minimum and maximum resale prices?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

We reserve the right to establish minimum and maximum resale prices for use with multi-area marketing programs and special price promotions.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 52)

What This Means (2025 FDD)

According to Buona's 2025 Franchise Disclosure Document, Buona retains the authority to set both minimum and maximum resale prices. However, this right is specifically limited to multi-area marketing programs and special price promotions. This means that while Buona franchisees generally have the freedom to set their own prices, Buona can intervene and dictate price ranges during larger marketing campaigns or promotional events that span multiple locations.

For a prospective Buona franchisee, this implies that while you will likely have control over your day-to-day pricing strategies, you must adhere to Buona's pricing guidelines during specified marketing initiatives. This could impact your profit margins during those periods, but it also ensures consistent branding and customer experience across different locations involved in the same promotion. It is important to understand the scope and frequency of these multi-area marketing programs and special price promotions to assess their potential impact on your overall profitability.

This practice is not uncommon in franchising, as franchisors often seek to maintain brand consistency and prevent price wars between franchisees. However, it's crucial for franchisees to have clarity on when and how these pricing controls will be implemented. A prospective franchisee should inquire about the typical frequency and duration of these promotions, as well as the degree of flexibility they might have within the established minimum and maximum price ranges.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.