Under what circumstances might Buns On Fire charge a fee for insurance?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
bona fide refunds actually paid to customers.
| 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 |
|---|
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, Buns On Fire may procure insurance on behalf of a franchisee and charge them for it under specific circumstances. If a franchisee fails to provide proof of insurance for their Buns On Fire franchise business, Buns On Fire has the right to obtain the necessary insurance coverage themselves.
In such cases, the franchisee will be responsible for covering the cost of the insurance policy that Buns On Fire secures. In addition to the cost of the insurance itself, Buns On Fire will also charge the franchisee an administrative fee of $2,500. This fee is intended to compensate Buns On Fire for the time and resources required to procure the insurance on the franchisee's behalf.
This policy encourages franchisees to maintain adequate and up-to-date insurance coverage for their Buns On Fire business. By ensuring that all franchise locations have proper insurance, Buns On Fire protects its brand and mitigates potential risks associated with uninsured incidents. Franchisees can avoid these fees by proactively managing their insurance requirements and providing timely proof of coverage to Buns On Fire.