What utilities are included in the 'Utilities' expense category for a Buona restaurant?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- (11) "Utilities" includes electricity, gas, water and sewer, and garbage collection.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 60–75)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the 'Utilities' expense category includes several essential services required to operate a restaurant. Specifically, this category covers the costs of electricity, gas, water and sewer, and garbage collection. This definition applies to both single-brand and dual-brand Buona restaurants, providing consistency in financial reporting across different business models.
For a prospective Buona franchisee, understanding which expenses are included in the 'Utilities' category is crucial for accurate financial planning and budgeting. By knowing that electricity, gas, water, sewer, and garbage collection are grouped under this category, franchisees can better estimate their monthly operating costs and manage their cash flow effectively. This clarity helps in comparing the financial performance of different Buona locations and identifying areas where costs can be optimized.
It's important to note that while the FDD defines what is included in the 'Utilities' category, the actual costs for these utilities can vary significantly based on factors such as location, restaurant size, and usage patterns. Franchisees should conduct thorough research on local utility rates and consumption patterns to develop realistic financial projections. Additionally, franchisees should inquire about any potential energy-efficient practices or equipment that could help reduce utility expenses and improve profitability.