Does Buona have the right to reestablish the Marketing Fund after discontinuing it?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor reserves the right, in its sole discretion, to terminate or discontinue the Marketing Fund upon thirty (30) days' notice to Franchisee. All unspent monies on the date of termination or discontinuance shall be distributed to franchisees of Franchisor in proportion to their respective contributions made to the Marketing Fund during the previous twelve (12) month period. Franchisor shall have the right to reinstate the Marketing Fund upon the same terms and conditions herein set forth upon thirty (30) days' prior written notice to Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona has the right to reestablish the Marketing Fund after discontinuing it. Buona must provide franchisees with thirty (30) days' prior written notice before reinstating the Marketing Fund. The terms and conditions for the reinstated Marketing Fund will be the same as previously set forth.
If Buona terminates or discontinues the Marketing Fund, all unspent monies as of the termination date will be distributed to franchisees. The distribution will be proportional to each franchisee's contributions to the Marketing Fund during the twelve (12) month period before termination.
This clause provides Buona with flexibility in managing its marketing strategy, while also ensuring that franchisees receive adequate notice and a fair distribution of unspent funds if the Marketing Fund is discontinued. Prospective franchisees should consider this when evaluating the costs and benefits of investing in a Buona franchise.