Who has the sole discretion to determine what advertising, marketing, and promotions are necessary or appropriate for the Buona Marketing Fund?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Recognizing the value of advertising and marketing to the goodwill and public image of Buona Businesses, Franchisor will establish, maintain and administer an advertising, marketing and promotional fund (the "Marketing Fund") for such advertising, marketing and promotions as Franchisor may deem necessary or appropriate in its sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona, as the Franchisor, has the sole discretion to determine what advertising, marketing, and promotions are necessary or appropriate for its Marketing Fund. This fund is used for advertising, marketing, and promotions that Buona deems necessary to enhance the goodwill and public image of Buona Businesses.
Buona is entitled to direct all advertising, marketing, and promotional programs financed by the Marketing Fund. This includes having sole discretion over the creative concepts, materials, and endorsements used, as well as the geographic, market, and media placement and allocation of these programs. The Marketing Fund can cover various costs, such as preparing video, audio, digital, and written advertising materials, administering advertising programs, employing advertising agencies, maintaining the Buona Website, and developing internet-based marketing programs.
As a franchisee, you are required to contribute to this Marketing Fund, with contributions potentially reaching up to 2.5% of your Gross Sales. While Buona aims to use the fund to benefit all Buona Businesses, there's no guarantee that the expenditures in any specific area will be proportionate to the contributions from Buona Businesses in that area. Buona also does not ensure that any specific Buona Business will directly benefit in proportion to its contribution.
Franchisees should recognize that while they must contribute to the Marketing Fund, they have limited control over how these funds are spent. It is important to understand that Buona has the final say in all marketing-related decisions, which is a common practice in franchising to maintain brand consistency and maximize the overall impact of marketing efforts.