What is the process for requesting additional financial information from Buns On Fire?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
We administer and maintain a Proprietary Marketing Fund (the "Marketing Fund") for national and global advertising programs with monies collected from franchisees and corporate stores. We will determine, in our sole discretion, when, how and where the payments deposited into the Marketing Fund will be spent. We select the types of media used and the location of the advertising campaigns administered through the Marketing Fund. We use or may use the following media: print, radio, television, telephone, smart phone, social media and Internet. We may also use the funds for general public relations and to otherwise obtain and build brand awareness. The focus is on national and international coverage and marketing development and will be handled in-house or outsourced to a professional advertising or public relations firm. We will not receive any compensation for providing services to the Marketing Fund, other than the reimbursement of ordinary and necessary expenses, which may include in-house staff.
You must contribute one percent (1%) of your Gross Sales to the Marketing Fund. All franchisees and franchisor-owned operations will contribute on the same pro rata basis. At your request, we will make available to you an annual unaudited financial statement of the Marketing Fund. As we have just commenced franchising efforts, we have no prior year's allocation of expenditures to disclose.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 47–48)
What This Means (2025 FDD)
I am unable to provide information about the process for requesting additional financial information from Buns On Fire in the 2025 Franchise Disclosure Document. While Item 11 discusses the Proprietary Marketing Fund and states that "At your request, we will make available to you an annual unaudited financial statement of the Marketing Fund," this statement only pertains to the Marketing Fund and not the entire franchise system. The FDD does not describe a general process for franchisees to request additional financial information beyond the Marketing Fund's annual statement.
As a prospective franchisee, it is crucial to understand the financial performance and projections for a Buns on Fire franchise. Since the FDD does not outline a specific procedure for requesting financial data beyond the Marketing Fund, you should directly ask the franchisor about the availability of additional financial information.
Specifically, inquire about the types of financial reports or data they are willing to share, the process for making such requests, and any limitations or restrictions on the information provided. Understanding the financial health and potential profitability of a Buns on Fire franchise is essential for making an informed investment decision.