Can Buona use technology fees to cover costs or pay fees to third-party providers?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall pay to Franchisor a technology fee in an amount determined by Franchisor.
Franchisor has the right to determine how and for what purposes the technology fees will be used, which may include covering Franchisor's costs or paying fees to third party providers for technology development, maintenance, and usage for the franchise system, and subscription and license fees paid by Franchisor in order for franchisees to have access to and use certain technology tools, and for related research and development conducted by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, franchisees are required to pay a technology fee, the amount of which is determined by Buona. Buona has the authority to decide how these technology fees are utilized.
Specifically, Buona may use the technology fees to cover its own costs related to technology. Additionally, these fees can be used to pay third-party providers who assist with technology development, maintenance, and usage for the entire Buona franchise system.
Furthermore, the technology fees can cover subscription and license fees that Buona pays to ensure franchisees have access to and can use certain technology tools. These fees can also be allocated to related research and development activities conducted by Buona to improve and innovate its technological offerings.