What happens to advertising submitted to Buns On Fire for review?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 6% of Gross Revenue2 | Payable monthly. This will be collected as of the first week of the month. | Royalty Fees are payable by automatic debit, and funds must be made available in your account for withdrawal. All monthly earnings reports are due by the fifth of each month for the previous month. |
| Proprietary Marketing Fund | 1% of Gross Revenue | Payable monthly. This will be collected as of the first week of the month. | We will use this to cover, among other things, collection of customer data, customer feedback and mystery shopping. Royalty Fees are payable by automatic debit, and funds must be made available in your account for withdrawal. All monthly earnings reports are due by the fifth of each month for the previous month. |
| Local Advertising and Marketing | 1% of Gross Revenue | Must be spent monthly - paid directly to advertising vendors. | The amount you spend on marketing must be reported to us on a quarterly basis. This is in addition to your Marketing Fund contributions. Any advertising you propose to use must be approved by us. All advertising submitted to us for our review will become our property. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, any advertising materials a franchisee proposes to use must be approved by Buns On Fire. Once advertising is submitted to Buns On Fire for review, it becomes the property of Buns On Fire.
This policy has several implications for prospective franchisees. While franchisees are required to spend 1% of their gross revenue on local advertising and marketing, they do not retain ownership of the advertising materials they develop and submit for approval. This means Buns On Fire can use those ideas or materials for other purposes, potentially across the entire franchise system.
Franchisees should carefully consider this when allocating resources to local advertising. While franchisees benefit from Buns On Fire's review and potential improvements to their advertising, they relinquish control over those materials. This is not uncommon in franchising, as franchisors often want to maintain brand consistency and control marketing messaging. However, franchisees should weigh the benefits of brand consistency against the loss of ownership of their advertising concepts.
It is important for prospective franchisees to discuss with Buns On Fire the specific guidelines and approval process for advertising materials. Understanding the criteria Buns On Fire uses to evaluate and potentially repurpose franchisee-submitted advertising can help franchisees make informed decisions about their local marketing efforts.