When will Buns On Fire require or accept payment of any initial franchise fees?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary set forth in the Franchise Agreement, the following provision shall supersede and apply:
- Section 4.01 of the Franchisee Agreement shall be amended to add the following language:
"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."
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the standard policy is that franchisees in Illinois, Maryland, North Dakota, Rhode Island, South Dakota, and Virginia do not have to pay the initial franchise fee until Buns On Fire has met its pre-opening obligations and the franchisee has started operating their restaurant. This deferral is mandated by franchise laws in those states. This means a prospective franchisee in those states will have more time to secure funding or generate revenue before needing to pay the initial franchise fee.
For franchisees outside of these states, the FDD does not specify a deferred payment plan for the initial franchise fee. Typically, in the franchise industry, the initial franchise fee is due upon signing the franchise agreement.
A prospective franchisee should confirm with Buns On Fire the exact timing of the initial franchise fee payment, especially if they are not located in Illinois, Maryland, North Dakota, Rhode Island, South Dakota, or Virginia. Understanding the payment schedule is crucial for financial planning and ensuring sufficient capital is available when required.