Are other financial statements required for Buns On Fire at this time?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
t of ordinary and necessary expenses, which may include in-house staff.
You must contribute one percent (1%) of your Gross Sales to the Marketing Fund. All franchisees and franchisor-owned operations will contribute on the same pro rata basis. At your request, we will make available to you an annual unaudited financial statement of the Marketing Fund. As we have just commenced franchising efforts, we have no prior year's allocation of expenditures to disclose.
We are not obligated to spend any amount of the Marketing Fund on marketing in your specific area. Any unspent amounts in the Marketing Fund will be saved for later spending. No percentage of the Marketing Fund will be used for the solicitation of franchisees; however, our advertising and marketing material may contain contact numbers for obtaining information about Buns on Fire Restaurant franchises.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 47–48)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Buns On Fire requires franchisees to contribute to a Proprietary Marketing Fund, and an annual unaudited financial statement of the Marketing Fund will be made available to franchisees upon request. Franchisees must contribute one percent (1%) of their Gross Sales to the Marketing Fund, with all franchisees and franchisor-owned operations contributing on the same pro rata basis. The franchisor determines how the Marketing Fund will be spent and is not obligated to spend any amount in a franchisee's specific area. Any unspent amounts will be saved for later use.
Additionally, franchisees are required to spend at least one percent (1%) of their Gross Revenue on local advertising and marketing. Franchisees must provide invoices or supporting documentation to substantiate these Local Marketing expenditures upon request. Failure to meet this minimum local advertising requirement results in the franchisee paying the difference between what they should have spent and what they actually spent into the Marketing Fund.
While the FDD mentions the availability of an annual unaudited financial statement for the Marketing Fund, it does not specify any other required financial statements that franchisees must provide to Buns On Fire on a regular basis. A prospective franchisee should clarify with Buns On Fire what specific financial reporting requirements and schedules exist beyond the documentation for local marketing expenditures to ensure full compliance and transparency in their financial dealings with the franchisor.