How are 'BUONA Restaurant Sales' defined for a Buona franchise, according to the FDD?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
The terms used in the tables below for the Single Brand Buona Businesses (both Free Standing and Inline) are defined for purposes of this Item 19 statement of financial performance representation as follows:
- (1) "BUONA Restaurant Sales" are defined as the portion of total revenue received from the sale of goods and services, whether by cash or by check or credit card, for BUONA Restaurant Menu Items, less sales tax.
- (2) "BUONA Catering Sales" are defined as the portion of total revenue received from the sale of goods and services, whether by cash or by check or credit card, for BUONA Catering Menu Items, less sales tax.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 60–75)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, 'BUONA Restaurant Sales' are defined as the revenue received from the sale of goods and services related to the Buona Restaurant Menu Items. This includes payments made via cash, check, or credit card. Sales tax is subtracted from the total revenue to arrive at the 'BUONA Restaurant Sales' figure. This definition applies to both Free Standing and Inline Single Brand Buona Businesses.
For a prospective franchisee, understanding this definition is crucial because it forms the basis for calculating various financial performance metrics. 'BUONA Restaurant Sales' is a key component in determining gross sales and, subsequently, the profitability of the franchise. It is important to note that this definition specifically excludes sales tax, providing a clearer picture of the actual revenue generated from menu items.
Additionally, the FDD provides definitions for other related terms such as 'BUONA Catering Sales,' which covers revenue from catering menu items, and various cost categories like 'Food Cost' and 'Packaging Cost.' These definitions, along with 'BUONA Restaurant Sales,' are used to calculate 'Gross Profit,' offering a comprehensive view of the restaurant's financial performance. Franchisees should carefully review these definitions to accurately assess their potential earnings and manage their business effectively.