Are statements of operation included in Buona's financial statements?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
This Item 19 presents the following historical results of 19 affiliate-owned Buona restaurants located in the Chicago metropolitan area that are owned and operated solely by companies affiliated with us and are similar to the Buona Business offered in this Disclosure Document. The Buona brand has been established in the Chicago metropolitan area since 1981. Beginning in July 2021, we began adding the Rainbow Cone brand to certain existing affiliate-owned Buona restaurants. The Original Rainbow Cone brand was established in the Chicago metropolitan are over 90 years ago.
As of the date of this Disclosure Document, we do not have any franchised Buona restaurants so no data is included in this statement from franchised businesses.
All of the data shown on the tables below covers the 12 month period January 1, 2024 through December 29, 2024, except for one table for Store #18 which covers the period February 26, 2024 (opening date) through February 23, 2025.
The data of the 19 Buona restaurants included in this statement are broken down into the following categories:
- 10 Single Brand Free Standing Restaurants with Drive Thru
- 1 Single Brand Inline Restaurant
- 7 Dual Brand Free Standing Restaurants for the period January 1, 2024 through December 29, 2024
- 1 Dual Brand Free Standing Restaurant for the period February 26, 2024 (date of opening) through February 23, 2025.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Item 19 includes financial performance representations based on historical results from affiliate-owned Buona restaurants. Specifically, the FDD contains statements of historical results for 10 affiliate-owned single-brand free-standing restaurants with drive-throughs, 1 affiliate-owned single-brand inline restaurant, and 8 affiliate-owned dual-brand free-standing restaurants with drive-throughs. These statements include data from January 1, 2024, through December 29, 2024, with one exception for Store #18, which covers February 26, 2024 (opening date) through February 23, 2025.
The financial performance representations are derived from income statements prepared internally by Buona's affiliates, following generally accepted accounting principles. However, this information has not been audited. The Item 19 data includes gross sales and certain specified expenses, but it does not include all expenses that a Buona restaurant might incur.
Prospective franchisees should note that the financial performance of affiliate-owned units may not be indicative of the results a franchisee will achieve. Factors such as management experience, local competition, economic conditions, and marketing efforts can significantly impact a Buona Business's financial performance. The FDD explicitly states, "Some outlets have earned this much. Your individual results may differ. There is no assurance that you will earn as much." Therefore, Buona encourages prospective franchisees to conduct their own independent investigation and seek advice from financial, business, and legal advisors before making any decisions.