When are costs and attorneys' fees payable to Buns On Fire?
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. | Upon demand. | Payable on all overdue amounts. |
| Additional Onsite Training | Our then-current additional training fee (currently $25 per hour per instructor if at BoF Buffalo Grove or BoF Glendale Heights or $45 per hour per instructor at your Buns on Fire Restaurant) plus our expenses (including travel/airfare and hotel expenses if at your Buns on Fire Restaurant). | When required | Additional periodic refresher or supplemental training as required by the Franchise Agreement (and franchisee performance) |
| Renewal Fee | 25% of the then current | Prior to execution of the | Payable if you renew your |
| initial franchise fee. | renewal documents. | franchise. | |
| Prohibited Product or Service Fee | $250 per day of use of unauthorized products or services. | If incurred. | In addition to other remedies available to us. |
| Costs and Attorneys' Fees | Will vary under circumstances | Upon request. | If you default under a franchise or Area Development Agreement, you must reimburse us for the expenses we incur (such as attorneys' fees) in enforcing and/or terminating the agreement. |
| Securities Offering | Will vary under circumstances | Upon request | If you propose to make an offering of any securities, you must reimburse us for our reasonable costs (including attorneys' fees and accounting fees) in |
| Indemnification | Will vary under circumstances | Upon request | offering. You must reimburse us for the costs we incur if we are sued or held liable for claims that arise from your operation of the Franchise Business or in connection with any offer of your securities, or for costs associated with defending claims that you used the trademarks in an unauthorized manner. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, costs and attorneys' fees are payable upon request. Specifically, if a franchisee defaults under a franchise or Area Development Agreement, they must reimburse Buns On Fire for expenses incurred, including attorneys' fees, in enforcing or terminating the agreement.
Additionally, if a franchisee proposes to make an offering of any securities, they must reimburse Buns On Fire for reasonable costs, including attorneys' and accounting fees. Franchisees must also cover costs if Buns On Fire is sued or held liable for claims arising from the franchisee's operation, any offer of securities, or costs associated with defending claims of unauthorized trademark use.
This means that a Buns On Fire franchisee could face significant, unplanned expenses if they violate the franchise agreement, seek to sell securities, or are involved in legal disputes related to their business. The fact that these fees are due "upon request" means Buns On Fire has the discretion to demand immediate payment, which could put a strain on the franchisee's finances. Prospective franchisees should carefully consider these potential liabilities and ensure they have adequate legal and financial resources to cover such costs if they arise.