Risk Score
Pending analysis
Investment Range
$1,280,552 - $6,296,680
Franchise Fee
$32,000
Total US Locations
31
Business Summary
Buona operates restaurants that specialize in Italian beef sandwiches, along with a variety of other sandwiches, pasta, burgers, hot dogs, salads, and desserts. These restaurants offer both dine-in and delivery services, and also provide catering. Additionally, Chicago's Original Italian Beef Franchising LLC offers a dual-brand opportunity to combine the Buona concept with The Original Rainbow Cone, which features ice cream products.
Corporate History
Chicago's Original Italian Beef Franchising LLC was established in Illinois on March 4, 2021, and began offering Buona franchises in May 2021. While the franchisor itself is relatively new, its affiliate, Buona Beef LLC, has owned and operated similar restaurants since 1981, with another affiliate, The Buona Companies, L.L.C., managing these businesses since 1999. Another affiliate, Five Flavors Franchising LLC, has offered franchises for The Original Rainbow Cone ice cream businesses since 2019.
Financial Overview
Investment Range
$1,280,552 - $6,296,680
Franchise Fee (Low)
$32,000
Franchise Fee (High)
$60,000
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$1,000,865
Equipment Costs (High)
$3,542,740
Working Capital
$55,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition, as noted in the FDD's Special Risks section, calls into question Chicago's Original Italian Beef Franchising LLC's financial ability to provide services and support to franchisees. The financial statements show a negative Members' Equity (Deficit) of $(122,239) for 2023 and $(237,221) for 2024. Despite this, the independent auditors have issued an unqualified opinion on the financial statements, indicating they present fairly in all material respects.
Financing Details
Chicago's Original Italian Beef Franchising LLC does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
31
Franchised Units
0
Corporate Units
31
Avg Square Footage
3,740
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Chicago's Original Italian Beef Franchising LLC has no litigation history to report. The FDD states that no litigation is required to be disclosed in Item 3.
Bankruptcy History
Chicago's Original Italian Beef Franchising LLC has no bankruptcy history to report. The FDD states that no bankruptcy action is required to be disclosed in Item 4.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Buona franchisees must meet several conditions: they must have complied with the franchise agreement's terms during the initial period, provide advance written notice between 6 and 12 months before expiration, sign a new franchise agreement with potentially different terms, execute a general release of claims, ensure their manager(s) complete current training requirements, retain or secure an approved substitute for their business location, pay a $7,500 renewal fee, and update their business to meet Buona's current design standards.
Training & Support Program
Franchisor Assistance
Chicago's Original Italian Beef Franchising LLC offers a range of support. Before opening, it provides supplier lists, site selection guidance (though the franchisee is responsible for the final decision), defines a protected area, approves leases, and gives typical floor plans and design assistance. It also provides initial training for owners and managers, on-site assistance for grand openings, and online access to the operations manual. After opening, franchisees receive ongoing advisory assistance, updates to the operations manual, and may be required to attend supplemental training, seminars, meetings, or conferences. The franchisor manages a Marketing Fund, directs advertising programs, and provides approved marketing materials. For computer systems, it requires and facilitates a designated point-of-sale system and various web-based platforms for operations, and provides access to several software tools, while requiring franchisees to maintain and upgrade these systems.
Initial Training Hours
418
Training Location
Chicago, Illinois area, at a designated restaurant or franchisor's principal place of business.
Ongoing Support
After opening, Buona franchisees receive ongoing advisory assistance and regular updates to the operations manual, which they are required to follow. The franchisor may also require franchisees and managers to attend supplemental training, seminars, regional meetings, or webinars for up to 5 days annually, and mandatory national or local conferences for up to 4 days annually; these may incur tuition or registration fees. The franchisor conducts periodic inspections and evaluations of the business. Additionally, Chicago's Original Italian Beef Franchising LLC administers a system-wide Marketing Fund, overseeing advertising, marketing, and promotional programs, and provides approved marketing materials. Franchisees are also required to spend a minimum of 1% of their gross sales on local advertising, subject to franchisor approval. For technology, franchisees must use a designated point-of-sale system and various web-based platforms for customer feedback, online ordering, third-party delivery, loyalty programs, payment processing, inventory, labor, accounting, and security, with access to specific software tools like Franconnect, Meazure Up, ProfitKeeper, Brainier, and guest retention software. Franchisees are responsible for maintaining and upgrading their computer systems and ensuring PCI DSS compliance.
Franchise Requirements
Ideal Candidate Profile
Chicago's Original Italian Beef Franchising LLC seeks franchisees who are either a principal owner with at least a 10% ownership interest or a designated management employee. This individual must have supervisory responsibility and dedicate full-time effort and best efforts to the development, promotion, management, and operation of the Buona business. Successful completion of the franchisor's initial training program is mandatory for this operating individual.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
limited
Territory Size Requirements
For a single-brand Buona business, the Protected Area is defined as a 0.5-mile radius from the approved location in urban areas. In non-urban areas, it requires a minimum population of 60,000. For developers, the Development Area size varies based on the number of restaurants planned, market potential, and the franchisee's financial and operational capabilities.
Staffing Notes
Buona requires an operating owner with at least a 10% ownership interest to have supervisory responsibility over each Buona Business. This principal owner or a designated management employee must dedicate full-time effort to the development, promotion, management, and operation of the business and must successfully complete Buona's initial training program. The designated manager is not required to have an equity interest. Buona franchisees are responsible for hiring all employees, including general managers, assistant managers, and staff for roles such as Guest Service Associate, Culinarian, Kitchen Trainer, Dining Room Attendant, and Catering Delivery Driver. Franchisees are exclusively responsible for all employment decisions, including compensation, benefits, and training, and must ensure employees understand they are employed by the franchisee, not Buona Franchising LLC. Buona sets the training requirements for employees and managers.