Is the Buns On Fire transfer fee refundable?
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;
ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF WASHINGTON
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
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 is generally non-refundable. Specifically, the FDD states that any assignee, transferee, or purchaser must pay Buns On Fire a non-refundable transfer fee before the transfer can be completed. This fee is intended to cover Buns On Fire's costs associated with the transfer process.
The transfer fee is equal to fifty percent of the then-current Initial Franchise Fee. This fee covers Buns On Fire's expenses for legal and accounting work, credit investigations, training, and other related charges. Because the transfer fee is a percentage of the initial franchise fee, the exact amount will vary over time as the initial franchise fee changes.
However, there is an exception for franchisees in Washington state. According to the Washington addendum, transfer fees are collectable only to the extent that they reflect Buns On Fire's reasonable estimated or actual costs in facilitating the transfer. This suggests that a portion of the transfer fee may be refundable in Washington if it exceeds the actual costs incurred by Buns On Fire.