What is the 'Payment Date' defined as for Buns On Fire royalty payments?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
ns, gifts certificates or vouchers are redeemed the retail price thereof may be credited against Gross Revenue during the reporting month in which such coupon, gift certificate or voucher is redeemed for the purpose of determining the amount of Gross Revenue upon which the Royalty Fee is due.
5.4 Payment Date
- (i.) Royalty Fees are due and payable monthly within the first five (5) days of the following month (the date payment is made being the "Payment Date"). Franchisee shall remit Royalty Fees, Advertising Fees and any other monies owed to Franchisor hereunder via electronic funds transfer or other comparable means. Franchisee shall comply with the procedures established by the Franchisor and/or to perform such acts and deliver and execute such documents as may be necessary to assist in or accomplish such electronic method of payment.
- (ii.) Franchisee agrees that he/she shall, at all times throughout the term of this Agreement, maintain a minimum balance of Five Thousand Dollars ($5,000.00) in the Franchisee's bank account against which such electronic funds transfer shall be drawn for the Franchised Business operated under this Agreement.
- (iii.) Franchisor may require payment by other than automatic debit, and Franchisee must comply with Franchisor's payment instructions. If Franchisee does not report the Franchised Business' Gross Revenue in accordance with Section 10.1(a) hereof, Franchisor may debit Franchisee's account for one hundred twenty percent (120%) of the last Royalty Fee that Franchisor debited. If the Royalty Fee Franchisor debits is less than the Royalty Fee Franchisee actually owes, Franchisor
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 Date is defined as the date royalty fees are due. Royalty Fees are due and payable monthly within the first five days of the following month. Franchisees must remit Royalty Fees, Advertising Fees and any other monies owed to Buns On Fire via electronic funds transfer or other comparable means.
Buns On Fire franchisees must comply with the procedures established by the franchisor to perform acts and deliver documents to assist in the electronic method of payment. Franchisees must maintain a minimum balance of $5,000 in the franchisee's bank account for electronic funds transfer.
Buns On Fire may require payment by other than automatic debit, and the franchisee must comply with the franchisor's payment instructions. If a franchisee does not report the Franchised Business' Gross Revenue, Buns On Fire may debit the franchisee's account for 120% of the last Royalty Fee that Buns On Fire debited. If the Royalty Fee Buns On Fire debits is less than the Royalty Fee the franchisee actually owes, Buns On Fire will debit the franchisee's account for the balance on a day it specifies. If the Royalty Fee Buns On Fire debits is greater than the Royalty Fee the franchisee actually owes, Buns On Fire will credit the excess against the amount it otherwise would debit from the franchisee's account during the following month.