Are Buns On Fire franchisees required to contribute to the Marketing Fund?
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.
Regional and Local Advertising
You must spend at least one percent (1%) of your Gross Revenue on local advertising and marketing ("Local Marketing Expenditure"). You must, at our request, provide invoices or other supporting documentation to us to substantiate your Local Marketing expenditures. If you fail to meet this minimum requirement, you will pay the difference between what you should have spent and what you actually spent into the Marketing Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 25–33)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Marketing Fund. Specifically, franchisees must contribute one percent (1%) of their Gross Sales to the Marketing Fund. All franchisees and franchisor-owned operations contribute on the same pro rata basis. Buns On Fire will provide an annual unaudited financial statement of the Marketing Fund at the franchisee's request.
The Marketing Fund is used for national and global advertising programs. Buns On Fire has sole discretion over how the funds are spent, including the types of media used, such as print, radio, television, telephone, smart phone, social media, and the Internet. The funds may also be used for general public relations and to build brand awareness, focusing on national and international coverage and marketing development, handled in-house or outsourced.
In addition to the Marketing Fund, Buns On Fire franchisees must spend at least one percent (1%) of their Gross Revenue on local advertising and marketing. Franchisees must provide documentation to substantiate these local marketing expenditures. Failure to meet this minimum local marketing expenditure requires the franchisee to pay the difference into the Marketing Fund. This ensures that all franchisees contribute a minimum amount towards marketing, whether at the national or local level.
Buns On Fire is not obligated to spend any amount of the Marketing Fund on marketing in the franchisee's specific area, and unspent amounts will be saved for later use. While the Marketing Fund will not be used for soliciting franchisees, advertising and marketing material may contain contact numbers for obtaining information about Buns on Fire Restaurant franchises.