Under what conditions must a Buns On Fire franchisee participate in a local advertising cooperative?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees to spend one percent (1%) of his/her monthly Gross Revenue on local advertising and marketing activities approved by Franchisor. This amount is in addition to any Marketing Fund contributions. If other Buns on Fire restaurants are located in Franchisee's area, Franchisee must participate in any local advertising cooperative that Franchisor establishes or causes to be formed, if Franchisor requires Franchisee's participation. Such participation may involve, for example, paying a pro rata share of the cost of yellow pages advertising (or equivalent) placed on behalf of Franchisee and other Buns on Fire restaurants. Franchisee may not solicit business through the use of an 800 (or other toll-free) number, direct mail, internet advertising or other advertising method without Franchisor's prior written consent.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, a franchisee must participate in a local advertising cooperative if other Buns On Fire restaurants are located in the franchisee's area, and if Buns On Fire establishes or causes such a cooperative to be formed, and if Buns On Fire requires the franchisee's participation.
This participation may involve paying a pro rata share of the cost of advertising, such as yellow pages advertising, on behalf of the franchisee and other Buns On Fire restaurants. The franchisee's contribution to the local advertising cooperative is in addition to the one percent (1%) of monthly gross revenue that the franchisee must spend on local advertising and marketing activities approved by Buns On Fire.
It is important for prospective franchisees to understand that Buns On Fire retains significant control over local advertising. Franchisees cannot solicit business through methods like toll-free numbers, direct mail, or internet advertising without prior written consent from Buns On Fire. This ensures that all advertising aligns with the brand's standards and marketing strategies.