Under what condition can Buona require a franchisee to re-engage a designated accounting service after the initial 12 months?

According to Buona's 2025 Franchise Disclosure Document, during the first 12 months of operation, a franchisee is required to use an accounting service designated by Buona for preparing financial statements and reports. After this initial period, Buona can mandate the franchisee to re-engage a designated accounting service if the franchisee is not in full compliance with the accounting and record-keeping requirements outlined in Section VI of the franchise agreement. This gives Buona a mechanism to ensure financial reporting standards are maintained throughout the franchise system.

This requirement ensures that all Buona franchisees adhere to consistent accounting practices, which allows Buona to accurately assess royalties and maintain uniformity across the franchise system. By requiring franchisees to use a designated accounting service, especially when they are not meeting compliance standards, Buona aims to protect the integrity of its financial data and reporting.

For a prospective Buona franchisee, this means that while they have the flexibility to choose their own accounting service after the first year, they must maintain full compliance with Buona's accounting requirements. Failure to do so could result in Buona requiring them to revert to the designated accounting service, potentially adding unexpected costs and reducing their autonomy in financial management. It is important for franchisees to understand and adhere to these requirements to avoid any disruptions or additional expenses.