Can Buona use technology fees for related research and development?
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 right to determine how these technology fees are used.
Buona may use the technology fees to cover its costs or pay third-party providers for technology development, maintenance, and usage for the franchise system. These fees can also be used to cover subscription and license fees that Buona pays to allow franchisees access to certain technology tools.
Specifically, Buona is permitted to use technology fees for related research and development that it conducts. This means that the technology fees paid by franchisees could directly fund innovation and improvements within the Buona franchise system.