Can Buona specify different payees and/or payment methods for franchisees?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall contribute to each of the Marketing Funds an amount Franchisor designates up to a total of two and one-half percent (2.5%) of the Gross Sales (as defined below) of the Franchised Business arising from the sale of Buona products and services and up to a total of three percent (3%) of the Gross Sales of the Franchised Business arising from the sale of The Original Rainbow Cone products and services.
Franchisor shall determine whether Franchisee will make one payment to Franchisor that will be distributed to each Marketing Fund based on the Gross Sales of the respective Brands or whether Franchisee shall make separate payments to each Marketing Fund.
Franchisor will give Franchisee sixty (60) days' notice prior to implementing any increase or decrease in the Marketing Fund contribution.
Franchisor has right to discontinue or reestablish the Marketing Fund upon sixty (60) days' advance notice to you.
In the event
Franchisor discontinues the Marketing Fund, Franchisor will distribute all unspent amounts existing in the Marketing Fund on the date of discontinuance to franchisees in proportion to their respective contributions for the most recent six (6) months. This Marketing Fund contribution is due weekly (or on such other basis as may be set forth in the Manuals or otherwise agreed to in writing by Franchisor) along with the royalty fee for the Gross Sales for the preceding week. A further description of the Marketing Fund and your obligations with respect to advertising, marketing and promoting the Franchised Business is set forth in Article XI of this Agreement. Marketing Fund contributions shall be paid in the manner set forth in Section 3.5 of this Agreement or as otherwise provided in the Manuals.
- 3.4 Technology Fee.
Franchisee shall pay to Franchisor a technology fee in an amount determined by Franchisor.
Franchisor has the right to determine how and for what purposes the technology fees will be used, which may include covering Franchisor's costs or paying fees to third party providers for technology development, maintenance, and usage for the franchise system, and subscription and license fees paid by Franchisor in order for franchisees to have access to and use certain technology tools, and for related research and development conducted by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees are required to contribute to marketing funds, with the amount designated by Buona up to 2.5% of gross sales from Buona products and services, and up to 3% of gross sales from The Original Rainbow Cone products and services. Buona has the discretion to decide whether the franchisee makes a single payment that Buona distributes to each marketing fund or whether the franchisee makes separate payments to each marketing fund.
Buona will provide franchisees with 60 days' notice before any increase or decrease in the marketing fund contribution. Buona also has the right to discontinue or reestablish the marketing fund, again with 60 days' advance notice to the franchisee. If the marketing fund is discontinued, any unspent amounts will be distributed to franchisees in proportion to their contributions over the most recent six months.
These marketing fund contributions are due weekly, or on another basis as specified in the manuals or agreed to in writing by Buona, along with the royalty fee for the gross sales of the preceding week. The FDD states that the marketing fund contributions shall be paid in the manner set forth in Section 3.5 of the agreement or as otherwise provided in the manuals.
In addition to marketing fund contributions, Buona franchisees must also pay a technology fee, the amount of which is determined by Buona. Buona has the right to determine how these technology fees are used, including covering Buona's costs, paying third-party providers, or for related research and development.