If I renew my Buns On Fire franchise, is a renewal fee payable?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
| between 1% and 2% of Gross Revenue. | |||
|---|---|---|---|
| Insurance | Cost of procuring insurance for you. | If incurred. | If you do not provide proof of insurance for your Franchise Business, we may procure it on your behalf and charge you the cost of procuring this insurance, including an administrative fee of $2,500 payable to us. |
| Transfer Fee | 50% of the then current initial franchise fee. | Prior to consummation of the transfer. | Payable if you sell your franchise. |
| Audit Fee | Cost of the audit if we discover you have under reported by more than 5%. | Upon demand. | |
| Interest on Late Payments | A late fee of not less than $30 per day while an amount is overdue. | Upon demand. | Payable on all overdue amounts. |
| Additional Onsite Training | Our then-current additional training fee (currently $25 per hour per instructor if at BoF Buffalo Grove or BoF Glendale Heights or $45 per hour per instructor at your Buns on Fire Restaurant) plus our expenses (including travel/airfare and hotel expenses if at your Buns on Fire Restaurant). | When required | Additional periodic refresher or supplemental training as required by the Franchise Agreement (and franchisee performance) |
| Renewal Fee | 25% of the then current | Prior to execution of the | Payable if you renew your |
| initial franchise fee. | renewal documents. | franchise. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, a renewal fee is payable if you renew your franchise. The renewal fee is 25% of the then-current initial franchise fee. This fee must be paid prior to the execution of the renewal documents.
This means that when a franchisee chooses to extend their franchise agreement with Buns On Fire, they will incur a cost equivalent to a quarter of the initial franchise fee that is in effect at the time of renewal. For example, if the initial franchise fee at the time you originally signed your franchise agreement was $40,000, but the initial franchise fee has increased to $50,000 at the time of renewal, the renewal fee would be $12,500 (25% of $50,000).
Franchise renewal fees are a fairly standard practice in the franchising industry. They compensate the franchisor for the continued use of their brand, systems, and support. Franchisees should factor this cost into their financial planning when considering whether to renew their agreement with Buns On Fire. It is important to note that the renewal fee is based on the then current initial franchise fee, which may be higher or lower than the fee paid when the original franchise agreement was signed.