What costs will Buns On Fire charge me for performing my obligations?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
hat item, and all related rights to that item, to Franchisee and agrees to sign, and cause Franchisee's employees and other agents to sign, whatever assignment or other documents Franchisor requests to evidence Franchisor's ownership or to help Franchisor obtain intellectual property rights in the item.
ARTICLE IX ADVERTISING AND PROMOTIONAL ACTIVITIES
9.1 Marketing Fund Contributions
Recognizing the value of marketing and the importance of the standardization of promotions and public relations programs to the furtherance of the goodwill and public image of the System and the Marks, Franchisee agrees to contribute to a system-wide advertising and promotional Marketing Fund (the "Marketing Fund") during the term of this Agreement, and on a monthly basis payable at the same time and in the same manner as the Royalty Fee, an amount Franchisor determines that will not exceed one percent (1%) of Franchisee's Gross Revenue.
9.2 Local Advertising
Franchisee agrees to spend one percent (1%) of his/her monthly Gross Revenue on local advertising and marketing activities approved by Franchisor. This amount is in addition to any Marketing Fund contributions. If other Buns on Fire restaurants are located in Franchisee's area, Franchisee must participate in any local advertising cooperative that Franchisor establishes or causes to be formed, if Franchisor requires Franchisee's participation.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire FDD, franchisees may incur costs related to advertising and promotional activities. Franchisees must contribute to a system-wide Marketing Fund. The amount is determined by Buns On Fire, but will not exceed one percent (1%) of the franchisee's Gross Revenue, payable monthly.
In addition to the Marketing Fund, Buns On Fire franchisees are also required to spend one percent (1%) of their monthly Gross Revenue on local advertising and marketing activities that have been approved by Buns On Fire. If Buns On Fire establishes a local advertising cooperative in the franchisee's area, the franchisee must participate, which may include paying a pro rata share of advertising costs.
These advertising costs are ongoing obligations for Buns On Fire franchisees, intended to support the brand's image and local business. Franchisees should factor these expenses into their financial projections and understand the franchisor's requirements for advertising and promotional activities.