When is the Buns On Fire late 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. | Up |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the interest on late payments, which includes a late fee of not less than $30 per day, is payable upon demand for all overdue amounts. This means that if a franchisee fails to make a payment on time, Buns On Fire can demand immediate payment of the late fee, which accrues daily.
This policy is fairly standard in franchising, as franchisors need to ensure timely payments to maintain their own financial stability and support services for all franchisees. The 'upon demand' clause gives Buns On Fire the flexibility to address late payments promptly and consistently. The daily late fee can quickly add up, incentivizing franchisees to prioritize timely payments.
Prospective Buns On Fire franchisees should be aware of this late payment policy and ensure they have sufficient financial planning and cash flow management in place to avoid incurring these fees. Understanding the due dates for all fees, as outlined in Item 6 of the FDD, is crucial for maintaining a good financial standing with Buns On Fire.