Can Buns On Fire revoke or withdraw permission to exclude items from Gross Revenue?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii.) Franchisor may, from time to time, authorize certain other items to be excluded from Gross Revenue. Any such permission may be revoked or withdrawn at any time in writing by Franchisor in its discretion. In addition to the foregoing, the following are included within the definition of "Gross Revenue" described except as noted below:
-
- The full value of Products furnished to Franchisee's employees as an incident to their employment except that the value of any discounts extended to such employees may be credited against Gross Revenue during the reporting month in which the Products were furnished for the purpose of determining the amount of Gross Revenue upon which the Royalty Fee is due; and
-
- All proceeds from the sale of coupons, gift certificates or vouchers; provided that at the time such coupons, gifts certificates or vouchers are redeemed the retail price thereof may be credited against Gross Revenue during the reporting month in which such coupon, gift certificate or voucher is redeemed for the purpose of determining the amount of Gross Revenue upon which the Royalty Fee is due.
-
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Buns On Fire retains the right to revoke or withdraw permission to exclude certain items from a franchisee's Gross Revenue.
The FDD specifies that while Buns On Fire may authorize certain items to be excluded from Gross Revenue, this permission is not permanent. Buns On Fire has the discretion to revoke or withdraw such permission at any time. This revocation or withdrawal must be communicated to the franchisee in writing.
This provision means that a Buns On Fire franchisee's royalty fees, which are calculated as a percentage of Gross Revenue, could increase if Buns On Fire withdraws permission to exclude previously excluded items. Franchisees should therefore be aware that any exclusions granted are not guaranteed for the life of the franchise agreement and are subject to change at Buns On Fire's discretion.