What happens to any unspent amounts in the Buns On Fire Marketing Fund?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
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 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 25–33)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, any unspent amounts in the Marketing Fund will be saved for later spending. Buns On Fire is not obligated to spend any amount of the Marketing Fund on marketing in a franchisee's specific area.
Buns On Fire franchisees are required to contribute one percent of their gross sales to the Marketing Fund, with all franchisees and franchisor-owned operations contributing on the same pro rata basis. Franchisees can request an annual unaudited financial statement of the Marketing Fund from Buns On Fire.
This policy of saving unspent funds for later use is relatively common in franchising, allowing franchisors to accumulate resources for larger, strategic advertising initiatives or to address unforeseen marketing challenges. However, the FDD also states that no percentage of the Marketing Fund will be used for the solicitation of franchisees; however, their advertising and marketing material may contain contact numbers for obtaining information about Buns on Fire Restaurant franchises. This means that while the fund won't directly target new franchisees, marketing materials might include franchise information.