What is the non-refundable initial franchise fee for a Buns On Fire franchise?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
"Notwithstanding the foregoing, payment of the Initial Franchise Fee shall be deferred until we have satisfied our pre-opening obligations and you have commenced operation of your Buns on Fire Restaurant."
"Assignee, transferee, or purchaser shall, prior to any such assignment, pay to Franchisor a non-refundable transfer fee equal to fifty percent (50%) of the then-current Initial Franchise Fee to reimburse Franchisor for its legal and accounting fees, credit investigation, training expenses, and other charges and expenses in connection with such assignment, transfer or sale; and"
"Notwithstanding anything to the contrary in the Franchise Agreement, if you are a resident of the State of North Dakota and/or purchasing a franchise for a Buns on Fire Restaurant located in the State of North Dakota, then you need not pay the Initial Franchise Fee or any of the other initial fees or payments to us until your Buns on Fire Restaurant commences doing business, by which time we will have fulfilled our initial obligations to you under the Franchise Agreement and related agreements."
"Unless we grant you a term that is longer than the remaining term under this Franchise Agreement, you will not be required make an Initial Franchise Fee payment for the relocated Franchised Business. However, you will be required to pay a Relocation Fee of twenty-five hundred dollars ($2,500) to us upon execution of the new Franchise Agreement."
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the payment of the initial franchise fee is deferred until Buns On Fire has satisfied its pre-opening obligations and the franchisee has commenced operation of their restaurant. This deferral is specifically mentioned in addenda for California, Hawaii, Illinois, North Dakota, and South Dakota. This means that franchisees in these states do not have to pay the initial franchise fee until their Buns On Fire restaurant is ready to open and operating.
For franchisees relocating their Buns On Fire restaurant, if the relocation is approved, they will be required to sign the then-current form of the Franchise Agreement. Unless Buns On Fire grants a term that is longer than the remaining term under the current Franchise Agreement, the franchisee will not be required to make an Initial Franchise Fee payment for the relocated Franchised Business. However, they will be required to pay a Relocation Fee of $2,500 upon execution of the new Franchise Agreement.
Furthermore, the FDD states that any assignee, transferee, or purchaser must pay Buns On Fire a non-refundable transfer fee equal to fifty percent (50%) of the then-current Initial Franchise Fee before any such assignment. This fee is to reimburse Buns On Fire for its legal and accounting fees, credit investigation, training expenses, and other charges and expenses in connection with such assignment, transfer, or sale.