What is the amount of the initial franchise fee for a Buns On Fire franchise?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless we grant you a term that is longer than the remaining term under this Franchise Agreement, you will not be required make an Initial Franchise Fee payment for the relocated Franchised Business. However, you will be required to pay a Relocation Fee of twenty-five hundred dollars ($2,500) to us upon execution of the new Franchise Agreement.
- (viii.) Assignee, transferee, or purchaser shall, prior to any such assignment, pay to Franchisor a non-refundable transfer fee equal to fifty percent (50%) of the then-current Initial Franchise Fee to reimburse Franchisor for its legal and accounting fees, credit investigation, training expenses, and other charges and expenses in connection with such assignment, transfer or sale; and
"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."
"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."
- 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."
- 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."
- 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."
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- Notwithstanding anything to the contrary in the Franchise Agreement, if you are a resident of the State of North Dakota and/or purchasing a franchise for a Buns on Fire Restaurant located in the State of North Dakota, then you need not pay the Initial Franchise Fee or any of the other initial fees or payments to us until your Buns on Fire Restaurant commences doing business, by which time we will have fulfilled our initial obligations to you under the Franchise Agreement and related agreements.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the payment of the initial franchise fee for a Buns On Fire franchise is subject to specific conditions and addenda depending on the state where the franchise is located. For franchisees in California, Hawaii, and South Dakota, the payment of the initial franchise fee is deferred until Buns On Fire has satisfied its pre-opening obligations and the franchisee has commenced operations. Similarly, in Virginia, the initial franchise fee and other initial payments are deferred until Buns On Fire completes its pre-opening obligations, as required by the Virginia State Corporation Commission's Division of Securities and Retail Franchising.
For franchisees in North Dakota, the FDD states that they do not need to pay the initial franchise fee or any other initial fees or payments until their Buns On Fire restaurant commences doing business, and by that time, Buns On Fire will have fulfilled its initial obligations.
It is important to note that if a franchisee requests to modify or change the location of their franchise and it is approved by Buns On Fire, the franchisee may be required to sign the then-current form of the Franchise Agreement. Unless Buns On Fire grants a term that is longer than the remaining term under the current Franchise Agreement, the franchisee will not be required to make an Initial Franchise Fee payment for the relocated Franchised Business. However, they will be required to pay a Relocation Fee of twenty-five hundred dollars ($2,500) upon execution of the new Franchise Agreement. Additionally, if a franchisee assigns, transfers, or sells their franchise, the assignee, transferee, or purchaser must pay Buns On Fire a non-refundable transfer fee equal to fifty percent (50%) of the then-current Initial Franchise Fee.