How is the Buns On Fire renewal fee calculated?
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. | Upon demand. | Payable on all overdue amounts. |
| Additional Onsite Training | Our then-current additional training fee (currently $25 per hour per instructor if at BoF Buffalo Grove or BoF Glendale Heights or $45 per hour per instructor at your Buns on Fire Restaurant) plus our expenses (including travel/airfare and hotel expenses if at your Buns on Fire Restaurant). | When required | Additional periodic refresher or supplemental training as required by the Franchise Agreement (and franchisee performance) |
| Renewal Fee | 25% of the then current | Prior to execution of the | Payable if you r |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, the renewal fee is 25% of the then-current initial franchise fee. This fee is payable prior to the execution of the renewal documents if a franchisee chooses to renew their franchise agreement.
For a prospective Buns On Fire franchisee, this means that renewing the franchise will require a significant payment. The exact amount will depend on what the initial franchise fee is at the time of renewal, which may be different from the fee paid when the franchise was originally purchased. Franchisees should factor this potential cost into their long-term financial planning.
Renewal fees are a common practice in franchising, intended to compensate the franchisor for the continued use of their brand, systems, and support. The fee amount can vary widely across different franchise systems, with some charging a flat fee, a percentage of gross sales, or a calculation based on the current initial franchise fee, as Buns On Fire does. Franchisees should carefully consider the renewal terms and associated costs before deciding to renew their agreement.