What is the minimum late fee charged by Buns On Fire per day?
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 Buns On Fire's 2025 Franchise Disclosure Document, if a franchisee makes a late payment to the company, they will incur a late fee. The minimum late fee charged by Buns On Fire is $30 per day for each day the amount remains overdue. This fee is payable upon demand and applies to all overdue amounts.
This means that if a franchisee is even one day late on a payment, they will be charged at least $30. This fee can quickly add up, especially if the overdue amount is substantial or remains unpaid for an extended period. Franchisees should ensure they have sufficient funds available to cover all payments to Buns On Fire and make payments on time to avoid incurring these daily late fees.
Late fees are a common practice in franchising to encourage timely payments and compensate the franchisor for the administrative costs and potential disruptions caused by late payments. Franchisees should carefully review the payment terms and due dates outlined in the Franchise Agreement to avoid these charges. It is also important to communicate promptly with Buns On Fire if any payment issues arise to explore potential solutions and minimize the impact of late fees.