What statements of operations are included in Buona's audited financial statements?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 19: FINANCIAL PERFORMANCE REPRESENTATIONS]
STATEMENT OF HISTORICAL RESULTS FOR 10 AFFILIATE-OWNED SINGLE BRAND FREE STANDING RESTAURANTS WITH DRIVE THROUGH
The 10 Buona restaurants included in the 3 tables below are single brand free standing restaurants with a drive through (identified in the tables below as Stores #1 through #10). All 10 of the Buona restaurants opened on or after January 2013 and were in operation for the full 52 operating weeks from January 1, 2024 through December 29, 2024.
The operations of the 10 affiliate-owned units included in 3 tables below do not differ materially from those of a new franchised Buona Business that is a free standing location with a drive through window except that the affiliate-owned units sell pizza, and the new franchised Buona Businesses will not sell pizza. Information is provided below on what percentage of total sales of the affiliate-owned units was derived from the sale of pizza products.
The 3 tables below show the Gross Sales and certain specified expenses as listed and defined below of the
10 Buona affiliate-owned restaurants included in this statement. This does not include all expenses incurred by a Buona restaurant.
The source of this data is income statements for each individual restaurant prepared internally by our affiliates consistent with generally accepted accounting principles. The same accounting system is used for each restaurant. The information has not been audited.
[Item 19: FINANCIAL PERFORMANCE REPRESENTATIONS]
STATEMENT OF HISTORICAL RESULTS FOR 1 AFFILIATE-OWNED SINGLE BRAND INLINE RESTAURANT
The data provided in this section in the table below is based on the historical performance of 1 single brand Buona restaurant in an inline location in the Chicago metropolitan area that is owned and operated by a company affiliated with us. This restaurant has been in operation since November 2017.
The operations of the affiliate-owned unit included in the table below do not differ materially from those of a new franchised Buona Business established in an inline shopping center location without a drive through window.
The table below shows the Sales and certain specified expenses as listed below and defined above of the 1 Buona affiliate-owned single brand inline restaurant. This does not include all expenses incurred by a Buona restaurant.
The source of this data is the income statement for this restaurant prepared internally by our affiliate consistent with generally accepted accounting principles. The information has not been audited.
[Item 19: FINANCIAL PERFORMANCE REPRESENTATIONS]
Definitionsfor Single Brand. The terms used in the tables below for the Single Brand Buona Businesses (both Free Standing and Inline) are defined for purposes of this Item 19 statement of financial performance representation as follows:
- (1) "BUONA Restaurant Sales" are defined as the portion of total revenue received from the sale of goods and services, whether by cash or by check or credit card, for BUONA Restaurant Menu Items, less sales tax.
- (2) "BUONA Catering Sales" are defined as the portion of total revenue received from the sale of goods and services, whether by cash or by check or credit card, for BUONA Catering Menu Items, less sales tax.
- (3) "Food Cost" includes costs of food and beverage items.
- (4) "Packaging Cost" includes paper and plastic product expenses.
- (5) "Gross Profit" is Gross Sales less Food Cost and Packaging Cost.
[Item 19: FINANCIAL PERFORMANCE REPRESENTATIONS]
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- This financial performance representation does not reflect all costs or expenses that must be deducted from the Gross Sales figures to obtain a net income or profit number resulting from the operation of a Buona Business.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 78)
What This Means (2025 FDD)
Based on the 2025 FDD, the financial performance representations for Buona include historical results from affiliate-owned restaurants. Specifically, the FDD includes data from 10 single-brand free-standing restaurants with drive-throughs and one single-brand inline restaurant.
The data provided is based on income statements prepared internally by Buona's affiliates, following generally accepted accounting principles. However, it's important to note that this information has not been audited. The financial data encompasses the period from January 1, 2024, through December 29, 2024, reflecting a full 52 operating weeks for most locations, with one exception for Store #18, covering February 26, 2024 (opening date) through February 23, 2025.
The statements of historical results include gross sales and certain specified expenses, but do not encompass all expenses incurred by a Buona restaurant. The FDD defines various terms used in the financial tables, such as 'BUONA Restaurant Sales,' 'BUONA Catering Sales,' 'Food Cost,' 'Packaging Cost,' 'Gross Profit,' and various operating expenses. These definitions provide clarity on what is included in each category, allowing prospective franchisees to understand the data presented. It is important to note that the financial performance representation does not reflect all costs or expenses that must be deducted from the Gross Sales figures to obtain a net income or profit number resulting from the operation of a Buona Business.