Can Buns On Fire require franchisees to participate in an electronic funds transfer program?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 6: OTHER FEES
1 Except as described below, all fees are uniformly imposed by us. All fees are payable to us and are nonrefundable. We may require that you participate in an electronic funds transfer program by which payments due us are paid or directed electronically from your bank.
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, Buns On Fire may require franchisees to participate in an electronic funds transfer (EFT) program. This means that Buns On Fire can mandate that payments due to them are paid or directed electronically from the franchisee's bank account.
For a prospective Buns On Fire franchisee, this implies that they must be prepared to set up and use electronic funds transfer for making payments to the franchisor. This could include royalty fees, marketing fund contributions, or any other fees outlined in the franchise agreement. The FDD specifies that royalty fees and proprietary marketing fund fees are payable by automatic debit, requiring franchisees to ensure funds are available in their account for withdrawal.
While the FDD clearly states the possibility of mandatory EFT, franchisees should confirm the specific terms and conditions related to the EFT program with Buns On Fire. Understanding the frequency of transfers, the types of payments covered, and any associated costs or penalties for failed transfers is crucial for managing their finances effectively. Additionally, franchisees should inquire about the process for resolving any discrepancies or errors that may arise from electronic transactions.