When are the two 50% payments for the Buona relocation fee due?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
by us may take over, control and operate the Franchised Business. |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Management assistance upon death or incapacity | The then-current published fee for such management service, plus all travel expenses, room and board and other expenses reasonably incurred by our representative so long as it shall be required to enforce compliance with this Agreement. Current management services fee is $450 per day or 10% of Gross Sales. | As incurred. | If we provide management services upon the request of the executor, administrator or personal representative in the event of the death or incapacity of your owner until the franchise can be transferred. |
| Relocation | 50% of the then current initial franchise fee | 50% when we grant you the approval to relocate and 50% upon our acceptance of your new site. | Payable if you request and we approve your request to relocate the Franchised Business. |
| Liquidated Damages | The number of months remaining in the term times the average Gross Sales for the past 36 months (or lesser period if you have not operated for 36 months), times 4% (the royalty rate) times the present value factor based on an interest rate of 4% per year. For a Dual Brand Business, the applicable royalty rate for the Gross Sales from each Brand will be applied in the calculation. | Upon demand | We may impose liquidated damages if you terminate the Franchise Agreement, we terminate you for material breach of the Franchise Agreement, you abandon the Franchised Business or you make an unauthorized transfer o |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee requests and Buona approves a relocation of the franchised business, a relocation fee is required. The relocation fee is equal to 50% of the then-current initial franchise fee.
The first 50% payment of the relocation fee is due when Buona grants the franchisee approval to relocate. The second 50% payment is due upon Buona's acceptance of the new site.
Prospective franchisees should consider the timing of these payments when planning a relocation, as the first payment is due upon approval to relocate, potentially before the new site is secured. This could pose a financial risk if the new site is not ultimately accepted by Buona after the initial approval.