When is the Buns On Fire renewal fee payable?
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 renew your |
| initial franchise fee. | renewal documents. | franchise. |
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 payable prior to the execution of the renewal documents. The renewal fee is 25% of the then-current initial franchise fee. This means that if a franchisee decides to renew their franchise agreement with Buns On Fire, they must pay this fee before finalizing the renewal paperwork.
For a prospective Buns On Fire franchisee, this indicates that renewing the franchise involves a significant upfront cost. The franchisee needs to budget for this expense well in advance of the renewal date. Since the fee is a percentage of the then-current initial franchise fee, it's important to note that this amount could be higher (or lower) than the initial franchise fee they paid when they first opened their Buns On Fire location.
Franchise agreements typically include renewal options, but these often come with conditions and fees. Paying the renewal fee prior to signing the renewal documents is a fairly standard practice, ensuring that Buns On Fire receives compensation for extending the franchise agreement. Franchisees should carefully consider the potential benefits of renewal against this cost, and also factor in any potential refurbishment costs that may also be required at the time of renewal.