On what amounts is the Buns On Fire late fee payable?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
| between 1% and 2% of Gross Revenue. | |||
|---|---|---|---|
| Insurance | Cost of procuring insurance for you. | If incurred. | If you do not provide proof of insurance for your Franchise Business, we may procure it on your behalf and charge you the cost of procuring this insurance, including an administrative fee of $2,500 payable to us. |
| Transfer Fee | 50% of the then current initial franchise fee. | Prior to consummation of the transfer. | Payable if you sell your franchise. |
| Audit Fee | Cost of the audit if we discover you have under reported by more than 5%. | Upon demand. | |
| Interest on Late Payments | A late fee of not less than $30 per day while an amount is overdue. | Up |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, a late fee is applied to all overdue amounts. Specifically, Buns On Fire charges a late fee of not less than $30 per day for any overdue payments. This fee is payable upon demand.
This means that if a franchisee fails to make any payment on time to Buns On Fire, regardless of what that payment is for, they will incur a minimum late fee of $30 for each day the amount remains unpaid. This could include royalties, marketing fees, or any other fees outlined in the FDD. The late fee continues to accrue daily until the overdue amount is paid in full.
Franchisees should be diligent in ensuring all payments are made on time to avoid these daily late fees, as they can quickly add up and become a significant expense. It is also important to note that the $30 per day is a minimum, and Buns On Fire could potentially charge a higher late fee, although the FDD does not specify the conditions under which a higher fee might be applied. Franchisees should clarify with Buns On Fire what the maximum late fee could be and under what circumstances it would be imposed.