Are there any exceptions to the advertising approval requirements for Buona franchisees?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
r respective contributions made to the Marketing Fund during the previous twelve (12) month period. Franchisor shall have the right to reinstate the Marketing Fund upon the same terms and conditions herein set forth upon thirty (30) days' prior written notice to Franchisee.
- 11.2 Local Advertising. Beginning on the date of opening of the Franchised Business, in addition to the requirement for Franchisee to contribute to the Marketing Fund, each Period Franchisee must spend a minimum of one percent (1%) of the Gross Sales of the Franchised Business on local advertising, marketing and promotion to promote both the Buona and The Original Rainbow Cone Brands. Such expenditures will be made directly by Franchisee, subject to Franchisor's approval and direction. At Franchisor's request, Franchisee must furnish to Franchisor in a manner approved by Franchisor an accurate accounting of Franchisee's local advertising and marketing expenditures for each Period.
- 11.3 Grand Opening Advertising and Marketing. Beginning sixty (60) days prior to the opening of the Franchised Business and continuing through the first ninety (90) days of operation of the Franchised Business, Franchisee must spend a minimum of Twenty-Five Thousand Dollars ($25,000.00) conducting an advertising and marketing campaign to promote the grand opening of the Franchised Business and both Brands. Grand opening monies will be spent on social media, print, radio, digital advertising and/or other advertising or promotions that Franchisor and Franchisee agree is best suited for Franchisee's grand opening campaign.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees are generally required to obtain approval from Buona for their local advertising, marketing, and promotion efforts. Specifically, franchisees must spend a minimum of one percent of their gross sales on local advertising, marketing, and promotion, and these expenditures are subject to Buona's approval and direction. Franchisees must also furnish an accounting of these expenditures to Buona upon request.
However, there is an exception to this approval requirement when franchisees participate in a local advertising cooperative. If a franchisee joins and participates in a local advertising cooperative consisting of franchisees and/or Buona-owned businesses in their area, contributions to the cooperative will be credited toward the local advertising expenditure requirements. The amount and manner of contribution are agreed upon by a majority of the members of the cooperative.
This means that while Buona generally maintains control over local advertising, franchisees have some autonomy through participation in advertising cooperatives. By joining a cooperative, franchisees can pool resources and make advertising decisions collectively, which can provide some relief from the direct approval requirements of Buona. However, Buona assumes no liability or obligation to franchisees or any local cooperative regarding the maintenance, direction, or administration of the cooperative, including any failure by franchisees to make contributions.