What is the total initial franchise fee a Buona franchisee must pay?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
anchised Business are located require a longer notice period, the thirty-day period will be deemed modified to be the shortest notice period required by the laws of such jurisdiction.
III. FEES
- 3.1 Initial Franchise Fee In consideration of the franchise granted to Franchisee herein, Franchisee shall pay to Chicago's Original Italian Beef Franchising, LLC an initial franchise fee in the amount of Forty Thousand Dollars ($40,000.00) and shall pay to Five Flavors Franchising, LLC an initial franchise fee in the amount of Twenty Thousand Dollars ($20,000.00) (collectively, the "Initial Franchise Fee") payable in one lump sum upon execution of this Agreement by Franchisee. Except as otherwise specifically provided herein at Section 8,2, the Initial Franchise Fee is non-ref
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the initial franchise fee is $40,000 to Chicago's Original Italian Beef Franchising, LLC and $20,000 to Five Flavors Franchising, LLC. Therefore, the total initial franchise fee is $60,000. This fee is payable in a single lump sum when the Franchise Agreement is executed by the franchisee and is generally non-refundable.
Buona deems the initial franchise fee fully earned upon payment. This acknowledges the expenses Buona incurs while granting the franchise and accounts for the lost or deferred opportunity to grant a franchise to someone else. This is a common practice in franchising, as the initial fee compensates the franchisor for the initial setup and training provided to new franchisees.
It is important to note that while the initial franchise fee is generally non-refundable, there might be specific exceptions outlined elsewhere in the Franchise Agreement. Prospective franchisees should carefully review the entire agreement, especially Section 8.2, to understand the conditions under which a refund might be possible. Understanding the terms and conditions surrounding the initial franchise fee is crucial for any potential Buona franchisee.