Who is responsible for the costs of improvements, furniture, fixtures, equipment, and signage for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
r will be providing administrative, billing and/or collection services with respect to any National Account, Franchisor has the right to charge Franchisee a reasonable administrative fee for such services.
X. DUTIES OF FRANCHISEE
- 10.1 Maintenance and Renovation of the Franchised Business. Franchisee understands and acknowledges that every detail of the System is important to Franchisor, Franchisee and other franchisees so as to develop and maintain high and uniform operating standards, to increase the demand for Buona products and services and to protect the reputation and goodwill of Franchisor, the System and the Marks. Accordingly, Franchisee agrees that:
- (a) Franchisee shall maintain, at all times during the Term, at Franchisee's expense, the premises of the Franchised Business and all fixtures, furnishings, signs, systems and equipment, in conformity with Franchisor's high standards and public image and to make such additions, alterations, improvements, repairs, and replacements (but no others, without Franchisor's prior written consent) as may be required by Franchisor from time to time, including but not limited to the following, at Franchisee's sole cost and expense:
- i. To keep the Franchised Business in the highest degree of cleanliness, sanitation and repair, including but not limited to such periodic repainting, repairs or replacement of damaged or obsolete, furniture, fixtures and equipment, and replacement of obsolete signs, as Franchisor may reasonably direct;
- ii. To meet and maintain the highest governmental standards and ratings applicable to the operation of the Franchised Business; and
- iii. For the Franchised Business to be able to offer new products or services or to permit the Franchised Business to operate more efficiently.
- (b) In addition to the maintenance described in (a) above, Franchisee must complete a full reimaging, renovation, refurbish and modernization of the Franchised Business, within the time frame required by Franchisor, including the building design, parking lot, landscaping, equipment, point of sale system, signs, interior and exterior decor items, fixtures, furnishings, trade dress, color scheme, presentation of trademarks and service marks, supplies and other products and materials, to meet the then-current design criteria for Buona Businesses, including but not limited to such structural changes, remodeling and redecoration and such modifications to existing improvements as may be necessary to do so (a "Franchised Business Renovation"). Franchisee shall only be required to conduct a Franchised Business Renovation once during the Term and shall not be required to perform a Franchised Business Renovation if there is less than one (1) year remaining in the Term.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchisee is generally responsible for the costs associated with maintaining and renovating the franchised business. This includes all fixtures, furnishings, signs, systems, and equipment. The franchisee must ensure these elements conform to Buona's standards and public image, and they are responsible for any additions, alterations, improvements, repairs, and replacements required by Buona.
Specifically, the franchisee is responsible for keeping the business clean, sanitary, and in good repair, which includes repainting, repairing or replacing damaged or obsolete furniture, fixtures, and equipment, and replacing obsolete signs as directed by Buona. The franchisee must also meet and maintain the highest governmental standards applicable to the operation of the franchised business. Additionally, the franchisee bears the cost of remodeling, reimagining, renovating, refurbishing, and modernizing the franchised business to meet Buona's current standards, specifications, and design criteria. This includes building design, parking lot, landscaping, equipment, point of sale system, signs, interior and exterior decor items, fixtures, furnishings, equipment, trade dress, color scheme, and presentation of trademarks and service marks.
Buona also maintains control over the suppliers from which franchisees must purchase these items. Franchisees must purchase all fixtures, furniture, signs, equipment, and other equipment, materials, products, and supplies from distributors and suppliers that Buona has designated or approved. This may include Buona or its affiliates. This requirement ensures uniformity and quality across all Buona locations, but it also means that franchisees may not have the freedom to choose suppliers based on price or other factors. Buona may profit from these supplier relationships, either through direct sales or rebates, which could potentially increase costs for the franchisee.
In summary, while franchisees bear the financial responsibility for maintaining, improving, and updating their Buona franchise locations, Buona maintains significant control over the standards, specifications, and suppliers used for these updates. This arrangement ensures brand consistency but also places a potentially significant financial burden on the franchisee, especially when renovations or updates are required to meet new brand standards.