When is the Buns On Fire transfer fee payable?
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 Buns On Fire's 2025 Franchise Disclosure Document, the transfer fee is payable prior to the consummation of the transfer. The transfer fee is 50% of the then-current initial franchise fee. This fee is payable if a franchisee sells their Buns On Fire franchise.
This means that if a franchisee decides to sell their Buns On Fire location to a new owner, they must pay Buns On Fire a transfer fee equal to half of whatever the current initial franchise fee is at that time. This payment must be made before the sale is finalized and the business is officially transferred to the new owner.
Transfer fees are a common practice in franchising. They are intended to compensate the franchisor for their time and expenses in approving the transfer, training the new franchisee, and updating the franchise agreement. The amount of the transfer fee can vary widely among different franchise systems, but Buns On Fire's fee of 50% of the initial franchise fee is fairly typical.