In Rhode Island, when is the Initial Franchise Fee due for a Buns On Fire franchise?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary set forth in the Franchise Agreement, the following provisions shall supersede and apply:
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- 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 franchise agreement is modified for franchisees in Rhode Island. Specifically, the Rhode Island Addendum to the Franchise Agreement states that the payment of the Initial Franchise Fee is deferred.
Instead of paying the initial fee upfront, Rhode Island franchisees will only be required to pay the Initial Franchise Fee after Buns On Fire has satisfied its pre-opening obligations to the franchisee.
Furthermore, the franchisee must have commenced operations of their Buns On Fire restaurant before the initial franchise fee is due. This arrangement is more favorable for the franchisee, as it aligns the payment of the fee with the actual commencement of business operations, reducing the upfront financial burden and risk.