What costs can Buns On Fire include in its transfer fees?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the transfer fees that Buns On Fire collects must reflect the franchisor's reasonable estimated or actual costs in completing the transfer.
Specifically, for franchises purchased in Washington state, the FDD states that transfer fees are collectable to the extent that they reflect Buns On Fire's reasonable estimated or actual costs in effecting a transfer. This means Buns On Fire can only charge franchisees a transfer fee that accurately represents the expenses they incur during the transfer process.
Buns On Fire also specifies that the assignee, transferee, or purchaser must pay a non-refundable transfer fee equal to fifty percent (50%) of the then-current Initial Franchise Fee. This fee is intended to reimburse Buns On Fire for its legal and accounting fees, credit investigation, training expenses, and other charges and expenses related to the transfer. This provides more clarity on what the transfer fee covers, but the Washington addendum language regarding 'reasonable estimated or actual costs' would likely still apply.