What is the definition of 'Local Marketing Expenditure' for a Buns On Fire franchise?

According to the 2025 Buns On Fire Franchise Disclosure Document, Local Marketing Expenditure is defined as the amount a franchisee must spend on local advertising and marketing. Specifically, franchisees are required to spend at least one percent (1%) of their Gross Revenue on local advertising and marketing, which is designated as "Local Marketing Expenditure."

Buns On Fire requires franchisees to provide invoices or other supporting documentation to substantiate these local marketing expenditures upon request. If a franchisee fails to meet the minimum spending requirement of 1% of Gross Revenue, they must pay the difference between what they should have spent and what they actually spent into the Marketing Fund. This ensures that all franchisees contribute adequately to local marketing efforts, or that the marketing fund is appropriately supplemented.

While the minimum requirement for Local Marketing Expenditure is 1% of Gross Revenue, Buns On Fire suggests that franchisees may find it advantageous to spend a larger percentage to increase exposure and the chance of success for their franchise business. However, franchisees must obtain approval from Buns On Fire before using advertising and marketing materials sourced from any supplier other than the franchisor. All advertising placement is at the franchisee's own discretion and cost.