What does the Buns On Fire transfer fee reimburse the Franchisor for?
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 is designed to reimburse Buns On Fire for specific costs they incur during the transfer process. This fee is non-refundable and is equal to fifty percent (50%) of the then-current Initial Franchise Fee.
The transfer fee is intended to cover Buns On Fire's expenses related to the transfer, including legal and accounting fees, which arise from the necessary paperwork and consultations. It also covers the costs of conducting a credit investigation on the potential new franchisee to assess their financial stability. Furthermore, the fee reimburses Buns On Fire for training expenses to ensure the new franchisee is properly trained in the Buns On Fire system.
In addition to these specific items, the transfer fee also covers other charges and expenses that Buns On Fire may incur while facilitating the assignment, transfer, or sale of the franchise. This ensures that Buns On Fire is compensated for all the resources and efforts involved in the transfer process.