Is the additional pre-opening assistance provided by Buns On Fire the same for all franchisees?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
SMYA VENTURES LLC
EXHIBIT "F" STATE SPECIFIC ADDENDA CALIFORNIA ADDENDUM TO FRANCHISE AGREEMENT
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- Section 4.01 of the Franchisee Agreement shall be amended to add the following language:
"Notwithstanding the foregoing, payment of the Initial Franchise Fee shall be deferred until we have satisfied our pre-opening obligations, and you have commenced operation of your Buns on Fire Restaurant."
SMYA VENTURES LLC
HAWAII ADDENDUM TO FRANCHISE AGREEMENT
- Section 4.01 of the Franchisee Agreement shall be amended to add the following language:
"Notwithstanding the foregoing, payment of the Initial Franchise Fee shall be deferred until we have satisfied our pre-opening obligations and you have commenced operation of your Buns on Fire Restaurant."
SOUTH DAKOTA ADDENDUM TO FRANCHISE AGREEMENT
- Section 4.01 of the Franchisee Agreement shall be amended to add the following language:
"Notwithstanding the foregoing, payment of the Initial Franchise Fee shall be deferred until we have satisfied our pre-opening obligations and you have commenced operation of your Buns on Fire Restaurant."
VIRGINIA ADDENDUM TO FRANCHISE AGREEMENT
- Section 4.01 of the Franchisee Agreement shall be amended to add the following language:
"The Virginia State Corporation Commission's Division of Securities and Retail Franchising requires us to defer payment of the initial franchise fee and other initial payments owed by franchisees to the franchisor until the franchisor has completed its pre-opening obligations under the franchise agreement."
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the pre-opening obligations and initial franchise fee payment terms can vary based on the franchisee's location. Specifically, addenda to the Franchise Agreement for California, Hawaii, South Dakota, and Virginia franchisees state that the initial franchise fee is deferred until Buns On Fire has met its pre-opening obligations and the franchisee has commenced operations. For Virginia franchisees, this deferral is explicitly required by the Virginia State Corporation Commission's Division of Securities and Retail Franchising. These state-specific addenda modify the standard Franchise Agreement to comply with local regulations and protect franchisees' rights.
This means that franchisees in California, Hawaii, South Dakota, and Virginia will not be required to pay the initial franchise fee until Buns On Fire has fulfilled its pre-opening responsibilities, and the franchisee has started running their restaurant. This could be beneficial for franchisees in these states as it reduces their upfront financial burden and ensures that Buns On Fire is committed to providing the necessary support before receiving the franchise fee.
For prospective franchisees, it is crucial to review any state-specific addenda applicable to their location, as these addenda can significantly alter the terms and conditions of the standard Franchise Agreement. Franchisees should also consult with a franchise attorney to fully understand their rights and obligations under the Franchise Agreement and any applicable state laws.