Can the technology fee payment schedule for a Buona franchise vary?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
The technology fee shall be paid at times, in the manner, and in amounts as designated by the Franchisor.
Franchisor will give Franchisee at least sixty (60) days' prior notice before Franchisor before changing the amount of the technology fee.
- 3.5 Late Payment Charge.
If any monetary obligations owed by Franchisee to Franchisor
or to its Affiliates are more than seven (7) days overdue, Franchisee shall, in addition to any other obligations, pay to Franchisor a sum equal to one and one-half percent (1.5%) of the overdue balance per month, or the highest rate permitted by law, whichever is less, from the date said payment is due ("Late Payment Charge").
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the technology fee payment schedule can vary. The FDD states that the technology fee is to be paid at the times, in the manner, and in the amounts designated by Buona. This indicates that the payment schedule is not fixed and can be adjusted at Buona's discretion.
Buona will provide franchisees with at least sixty days' notice before changing the amount of the technology fee. This advance notice allows franchisees to prepare for any adjustments to their payment obligations.
Franchisees are also obligated to pay royalties and marketing fund contributions, and failure to pay technology fees can result in a fee of $100 per day until the default is cured. This highlights the importance of adhering to the designated payment schedule for the technology fee to avoid penalties and maintain compliance with the franchise agreement.