Can Buona use technology fees to pay for subscription and license fees?
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, pay third-party providers for technology development, maintenance, and usage related to the franchise system. This includes covering subscription and license fees that Buona pays to allow franchisees access to certain technology tools.
Additionally, the technology fees can be allocated to related research and development activities conducted by Buona. This means that the technology fees you pay as a franchisee could directly fund the technology infrastructure and advancements within the Buona franchise system.