When is the Buns On Fire audit 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. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, an audit fee is payable upon demand. This fee is incurred if Buns On Fire discovers that a franchisee has underreported revenue by more than 5%.
This means that if Buns On Fire conducts an audit and finds that a franchisee has underreported their gross revenue by more than 5%, the franchisee will be responsible for covering the cost of the audit itself. The audit fee is in addition to any other penalties or remedies Buns On Fire might pursue for underreporting.
Franchisees should ensure accurate and transparent financial reporting to avoid triggering an audit and the associated fees. Maintaining detailed records and adhering to Buns On Fire's reporting guidelines are crucial for compliance and can help prevent any discrepancies that could lead to an audit.