How will the technology fees collected from Buona franchisees be used?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchisor has the right to determine how technology fees from franchisees will be used. These fees may cover Buona's costs or payments to third-party providers for technology development, maintenance, and usage for the franchise system.
Specifically, the technology fees can be allocated to subscription and license fees paid by Buona, which enable franchisees to access and use certain technology tools. Additionally, these fees may support related research and development activities conducted by Buona.
This means that as a Buona franchisee, a portion of your ongoing fees will be directed towards maintaining and improving the technological infrastructure that supports the franchise system. While Buona retains discretion over the exact allocation, the FDD indicates that the fees are intended to enhance the technology available to franchisees.