In South Dakota, when is the Initial Franchise Fee for a Buns On Fire franchise due?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
SOUTH DAKOTA ADDENDUM TO FRANCHISE AGREEMENT
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 timing of the initial franchise fee payment in South Dakota is modified by a state-specific addendum. Specifically, the standard franchise agreement's Section 4.01 is amended for franchisees in South Dakota.
Instead of paying the initial franchise fee upfront, South Dakota franchisees are allowed to defer payment. The initial franchise fee is not due until Buns On Fire has met its pre-opening obligations to the franchisee.
Furthermore, the franchisee does not have to pay the initial franchise fee until they have commenced operations of their Buns On Fire restaurant. This means the franchisee can delay paying the initial fee until after the restaurant is open and running.