Is the royalty fee for a Buona franchise refundable?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Royalty.
Franchisee shall pay to Franchisor a recurring, non-refundable royalty in the amount of four percent (4%) of Gross Sales (as defined herein) during the Term,
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the royalty fee is not refundable. The document states that franchisees must pay a recurring royalty fee of 4% of gross sales during the term of the agreement, and this fee is explicitly described as non-refundable.
This means that once a Buona franchisee pays the royalty fee, they cannot get it back under any circumstances. This is a standard practice in franchising, as royalty fees are intended to compensate the franchisor for the ongoing use of their brand, system, and support.
Prospective Buona franchisees should factor this non-refundable aspect into their financial planning and ensure they understand the terms and conditions related to royalty payments as outlined in Section 3.2 of the franchise agreement.