Under what circumstances will Buona issue a Customer Satisfaction Reimbursement?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
as described above.
ITEM 6 OTHER FEES
Franchise Agreement
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Indemnification | Actual costs incurred by us. | As incurred | You have to reimburse us if we are held liable for claims arising from your operation of the development business or incur costs in defending them. |
| Costs and Attorney’s Fees | Actual costs incurred by us. |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona retains the discretion to address customer issues, potentially including refunding the customer's payment. If Buona chooses to issue a refund to a customer of a franchisee's Buona Business, the franchisee is then obligated to reimburse Buona for the amount of that refund. The FDD specifies that the reimbursement is for the actual costs incurred by Buona. This fee is due as incurred.
This policy means that Buona franchisees bear the financial risk of customer service issues that Buona decides to resolve with a refund. While this could protect the brand's reputation, it also introduces a potential cost for franchisees that is outside of their direct control.
Prospective franchisees should consider this reimbursement policy carefully and discuss with Buona the typical circumstances under which such refunds are issued. Understanding the frequency and average amounts of these reimbursements will be crucial in assessing the potential financial impact on their business.