How is the Buns On Fire transfer fee calculated?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
| between 1% and 2% of Gross Revenue. | |||
|---|---|---|---|
| Insurance | Cost of procuring insurance for you. | If incurred. | If you do not provide proof of insurance for your Franchise Business, we may procure it on your behalf and charge you the cost of procuring this insurance, including an administrative fee of $2,500 payable to us. |
| Transfer Fee | 50% of the then current initial franchise fee. | Prior to consummation of the transfer. | Payable if you sell your franchise. |
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 transfer fee is 50% of the then-current initial franchise fee. This fee is payable prior to the consummation of the transfer if a franchisee sells their franchise.
For a prospective Buns On Fire franchisee, this means that if they decide to sell their franchise in the future, they will need to pay Buns On Fire a transfer fee equivalent to half of what a new franchisee would pay at that time to start a new Buns On Fire franchise. This fee compensates Buns On Fire for the administrative costs and efforts associated with approving the transfer and onboarding a new franchisee.
Transfer fees are a common component of franchise agreements, allowing the franchisor to maintain control over who enters the system and to recoup costs associated with the transfer process. The amount of the transfer fee can vary among franchise systems, but a fee based on a percentage of the current initial franchise fee is a typical structure.