Under what circumstances will a Buona franchisee be charged a Non-Compliance fee, and what are the potential amounts?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
interests in Franchisee or the assets of the Franchised Business. |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Non-Compliance | $100 per day or $1,000 per day, depending on the nature of the default, from the first date of the default until default is cured. | Upon demand | Payable if you are not in compliance with obligations to submit reports, financial statements or returns; to pay royalties, marketing fund contributions or technology fees; to properly use Trade Secret Products; to comply with mandatory requirements of the Manual; to keep Franchised Business open during the required hours; to provide information or refuse entr |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee may incur a Non-Compliance fee for failing to meet certain obligations. This fee is charged if the franchisee fails to submit required reports, financial statements, or returns; neglects to pay royalties, marketing fund contributions, or technology fees; improperly uses Trade Secret Products; does not comply with mandatory requirements outlined in the Buona Manual; fails to keep the Franchised Business open during the required hours; withholds information or refuses entry for an audit or inspection; or engages in unauthorized use of the Marks.
The amount of the Non-Compliance fee ranges from $100 per day to $1,000 per day, depending on the specific nature of the default. This fee accrues from the first day of the default until the issue is resolved and compliance is restored. The fee is payable upon demand by Buona.
This non-compliance fee is in addition to any other fees that Buona may charge. It is important to note that the Non-Compliance fee serves as a financial disincentive for franchisees to neglect their contractual obligations and is designed to ensure brand consistency and adherence to operational standards across all Buona franchise locations. Prospective franchisees should carefully review the franchise agreement and operations manual to fully understand the requirements for compliance and avoid incurring these fees.