What assets and liabilities are included in the Buns On Fire opening balance sheet?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
M 5: INITIAL FEES**
Initial Fee
The initial franchise fee for the right to operate a single full sized Franchise Business is between $40,000 and $60,000 ("Initial Franchise Fee").
This fee is non-refundable and is (1) fully payable upon execution of the Franchise Agreement and (2) deemed fully earned by us upon receipt.
Initial Inventory
You will purchase from us or one of our Affiliates an initial proprietary inventory package for your Franchise Business. This initial proprietary inventory package contains the proprietary spices and other inventory items which are required to be purchased from us or one of our Affiliates pursuant to Item 8 hereof prior to the opening of your Buns on Fire Restaurant (the "Initial Proprietary Inventory Package"). The initial proprietary inventory package ("Initial Proprietary Inventory Package Fee") cost is expected to between $10,000 to $30,000. There are additional supplies such as certain perishable food items you will purchase from third-party suppliers. The Initial Proprietary Inventory Package may not include all the inventory and equipment required to operate your Buns on Fire Restaurant. It is your responsibility to obtain the balance of any inventory and equipment necessary to operate the Buns on Fire Restaurant.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 47–48)
What This Means (2025 FDD)
I am unable to provide information on the specific assets and liabilities included in the Buns On Fire opening balance sheet, according to the 2025 Franchise Disclosure Document. The provided excerpts from the FDD do not contain a sample balance sheet or a detailed list of typical assets and liabilities for a new franchise location.
However, the FDD does mention some initial costs franchisees will incur. The initial franchise fee ranges from $40,000 to $60,000. Additionally, franchisees must purchase an initial proprietary inventory package, costing between $10,000 and $30,000, from Buns On Fire or its affiliates. Franchisees are also responsible for acquiring additional supplies and equipment necessary to operate the restaurant.
To fully understand the financial requirements and potential balance sheet composition, prospective Buns On Fire franchisees should ask the franchisor for a complete list of required assets, typical liabilities, and a pro forma balance sheet. This will help in accurately projecting start-up costs and assessing the financial viability of the franchise.