When signing the Franchise Agreement for additional Buona franchises, how much of the Development Fee is applied against the initial franchise fee?

According to Buona's 2025 Franchise Disclosure Document, if you sign a Franchise Agreement for additional Buona franchises after an Area Development Agreement, $16,000 of the Development Fee you previously paid will be applied against the initial franchise fee. You will then be responsible for paying the remaining balance of $16,000. This credit is applied when purchasing additional franchises under both the standard Area Development Agreement and the Dual Brand Area Development Agreement.

This means that while the initial Development Fee is non-refundable, it does serve as a credit towards the franchise fees for subsequent Buona locations you develop. This arrangement is common in area development franchise agreements, as it incentivizes developers to expand the brand's presence.

However, this credit is contingent on adhering to the Development Schedule outlined in your Area Development Agreement. If you fail to meet the schedule, you will be required to pay the then-current initial franchise fees for any remaining restaurants, which could be higher than the discounted rate. For example, if you commit to developing three single-brand Buona franchises and miss the development schedule before signing the franchise agreement for the second location, you will have to pay an additional $48,000 in initial franchise fees for the second and third franchises. This is calculated as $40,000 times two (for the two remaining franchises), less the $32,000 already applied from the Development Fee.