What is the role of Authentic Brands of Chicago, LLC in the supply chain for a Buona franchise?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
signated and approved suppliers as well as other purchasing standards and specifications.
Our affiliate Authentic Brands of Chicago, LLC is currently the only designated supplier for Italian beef and related products. Our affiliate The Buona Companies, L.L.C. is currently an approved supplier, but not the only approved supplier, of marketing materials. Our affiliate, Keystone Planning + Design, PLLC is currently the only designated supplier for design and architectural services.
You must purchase, install, maintain in sufficient supply, and use, only other equipment, computer hardware and software, signs, insurance and other products and services that conform to the standards and specifications described in the Manual or otherwise in writing. Other than the requirements above and as more specifically set forth in the Manual, you are not obligated to purchase or lease any goods, services, supplies, fixtures, equipment, inventory or real estate from us or any other specifically designated source.
Approval of alternative suppliers
If you desire to purchase any such items from an unapproved supplier, you or the supplier must submit to us a written request for approval.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–34)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Authentic Brands of Chicago, LLC, an affiliate of Buona, serves as the only designated supplier for Italian beef and related products. This means that franchisees are required to purchase these specific items exclusively from Authentic Brands of Chicago, LLC. However, in the year ending December 31, 2024, Authentic Brands of Chicago, LLC had no revenue from franchisee purchases.
This designation ensures that Buona franchisees maintain a consistent quality and adhere to brand standards for core menu items like Italian beef. While franchisees must source these products from Authentic Brands of Chicago, LLC, they are not obligated to purchase other goods, services, or supplies from Buona or any other specifically designated source, as long as they meet Buona's standards and specifications.
Prospective franchisees should be aware that Buona reserves the right to receive payments from designated or approved suppliers in the future, although they do not currently do so. While franchisees will not receive material benefits based on their purchases from approved suppliers, compliance with the designated supplier requirement is mandatory under the Franchise Agreement. It is estimated that purchases from designated or approved suppliers will account for 60% to 80% of the total initial costs and 30% to 45% of the total ongoing costs to operate a Buona Business.