How are Royalty fees paid for a Buns On Fire franchise?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
n id="page-13-1">ITEM 6: OTHER FEES
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 6% of Gross Revenue2 | Payable monthly. This will be collected as of the first week of the month. | Royalty Fees are payable by automatic debit, and funds must be made available in your account for withdrawal. All monthly earnings reports are due by the fifth of each month for the previous month. |
| Proprietary Marketing Fund | 1% of Gross Revenue | Payable monthly. This will be collected as of the first week of the month. | We will use this to cover, among other things, collection of customer data, customer feedback and mystery shopping. Royalty Fees are payable by automatic debit, and funds must be made available in your account for withdrawal. All monthly earnings reports are due by the fifth of each month for the previous month. |
| Local Advertising and Marketing | 1% of Gross Revenue | Must be spent monthly - paid directly to advertising vendors. | The amount you spend on marketing must be reported to us on a quarterly basis. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the royalty fee is 6% of Gross Revenue. These fees are payable monthly and will be collected during the first week of the month.
Buns On Fire requires royalty fee payments to be made via automatic debit, meaning franchisees must ensure sufficient funds are available in their account for withdrawal. Franchisees are also required to submit monthly earnings reports by the fifth of each month, detailing the previous month's revenue.
Gross Revenue is defined as all revenue from the Franchise Business, including sales of products and services, catering, and delivery services, whether paid in cash or credit, and regardless of whether payment has been collected. Gross Revenue excludes excise, sales and use taxes, gross receipts taxes, and bona fide refunds actually paid to customers, provided these taxes are separately stated when the customer is charged.