Under what condition is the Service Charges and Non-Sufficient Funds Fee payable to Buona?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Service Charges and Non-Sufficient Funds Fee | Currently $250 | Upon demand | Payable if an ACH transaction is not honored. |
Source: Item 6 — OTHER FEES (FDD pages 16–23)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, a franchisee is required to pay a Service Charges and Non-Sufficient Funds Fee if an ACH (Automated Clearing House) transaction is not honored. The current fee for this is $250. This fee is payable upon demand by Buona.
In simpler terms, if Buona attempts to withdraw funds from a franchisee's bank account via ACH for any payments owed, and the transaction fails due to insufficient funds or any other reason, the franchisee will be charged $250. This fee is in place to cover the administrative costs and inconvenience Buona incurs due to the failed transaction.
Franchisees should ensure they maintain sufficient funds in their accounts to cover all payments to Buona to avoid incurring this fee. ACH transactions are a common method for franchisors to collect royalties and other fees, so understanding the terms and potential penalties is crucial for managing finances effectively as a Buona franchisee.