Are the fees payable to Buns On Fire refundable?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
1 Except as described below, all fees are uniformly imposed by us. All fees are payable to us and are nonrefundable. We may require that you participate in an electronic funds transfer program by which payments due us are paid or directed electronically from your bank.
"Gross Revenue" means all revenue of the Franchise Business, including all sales of products and services to customers of the Franchise Business (including income related to catering and delivery services, and any sales or orders of food products or food preparation services provided from or related to the Franchise Business), whether for cash or credit and regardless of collection in the case of credit. Gross Sales excludes excise, sales and use taxes, gross receipts taxes or similar taxes you pay based on revenues, if those taxes are separately stated when the customer is charged, and also excluding bona fide refunds actually paid to customers.
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, most fees paid to the franchisor are nonrefundable. Item 6 of the FDD outlines various fees that franchisees may incur, such as Royalty fees at 6% of Gross Revenue, Proprietary Marketing Fund fees at 1% of Gross Revenue, and Local Advertising and Marketing fees at 1% of Gross Revenue. The document specifies that, except as described elsewhere in the FDD, all fees are uniformly imposed and payable to Buns On Fire, and are nonrefundable.
This nonrefundable policy has significant implications for prospective franchisees. Once a franchisee pays a fee, whether it's a royalty, marketing contribution, or any other fee listed in Item 6, they generally cannot recover that money, even if circumstances change or the franchisee is dissatisfied with the services received. This underscores the importance of carefully evaluating the franchise opportunity and understanding all associated costs before investing.
While the general policy is that fees are nonrefundable, the FDD does mention an exception, indicating that there may be circumstances under which certain fees could be refundable. However, the specific details of these exceptions are not provided in this section. A prospective franchisee should clarify with Buns On Fire what specific fees, if any, are potentially refundable and under what conditions such refunds would be granted. Understanding these exceptions is crucial for making an informed investment decision.