Under what condition will Buona refund a portion of the initial franchise fee?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
The Initial Franchise Fee is non-refundable with one exception. If we terminate your Franchise Agreement for your failure to successfully complete the initial training program, we will refund you 10% of the initial franchise fee paid once you have signed and delivered to us a termination agreement and general release of all claims in a form satisfactory to us.
Source: Item 5 — INITIAL FRANCHISE FEE (FDD pages 14–15)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the initial franchise fee is generally non-refundable. However, there is one specific circumstance under which a franchisee may receive a partial refund.
The FDD states that if Buona terminates the Franchise Agreement because the franchisee fails to successfully complete the initial training program, a refund of 10% of the initial franchise fee will be provided. This refund is contingent upon the franchisee signing and delivering a termination agreement and a general release of all claims in a form satisfactory to Buona.
For a standard Buona franchise, the initial franchise fee is $40,000. Therefore, if the franchisee fails to complete the initial training and the agreement is terminated, the refund would amount to $4,000 (10% of $40,000), provided the franchisee meets the conditions outlined in the Franchise Agreement. This is a notable exception to the typical non-refundable nature of franchise fees and provides a limited safety net for franchisees who may not be suited to the business after undergoing initial training.