What does the Buns On Fire transfer fee cover?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
- (viii.) Assignee, transferee, or purchaser shall, prior to any such assignment, pay to Franchisor a non-refundable transfer fee equal to fifty percent (50%) of the then-current Initial Franchise Fee to reimburse Franchisor for its legal and accounting fees, credit investigation, training expenses, and other charges and expenses in connection with such assignment, transfer or sale; and
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the transfer fee covers specific expenses incurred by the franchisor during the transfer process. The fee is non-refundable and is equal to fifty percent of the then-current Initial Franchise Fee. This fee is intended to reimburse Buns On Fire for its costs related to legal and accounting work, conducting credit investigations on the potential transferee, providing training to the new franchisee, and covering other associated charges and expenses.
For a prospective Buns On Fire franchisee, this means that if they decide to sell their franchise, they will be responsible for ensuring the buyer pays this transfer fee to Buns On Fire. This fee can be substantial, as it is calculated as a percentage of the initial franchise fee, which can be a significant amount. The franchisee should factor this cost into their decision-making process when considering selling their franchise.
It is important to note that the transfer fee is non-refundable, regardless of whether the transfer is ultimately completed. Additionally, in the state of Washington, transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer. This may provide some protection to franchisees in Washington against excessive or unjustified transfer fees.