The gun would be returned to Buds for a refund

Jake, since you are the proposed buyer, if you are denied, no one else can pick it up. The FFL would contact Buds for a return of the firearm. Buds may or may not charge you a restocking fee deducted from your refund. You could appeal the denial if it is not something serious - https://ucr.fbi.gov/nics/appeals/nics-guide-for-appealing

Jake, If you can not have a firearm you purchased transferred to from your FFL. Go over your paperwork one more time and try to process. If no go. Firearm must go back to where it was purchased for refund minus restocking charge.

That's one of the good things about NC my CHL takes the place of the background check you may be able to have the FFL call in a check before you order. Unless there is something in your background that you are worried about it should not be a problem and you should not get a deny, You may get a hold and it may take a few days to get it straight and with a hold the FFL would keep the gun until it is legal for him to transfer it. I am not sure that it would be legal for the FFL to "buy" the gun from you as you do not "own" the gun until after the paperwork is done and approved

Jake - unfortunately, your FFL would in all likelihood have to return the pistol to Buds, which would possibly subject you to shipping and restock fees. Plus your FFL would probably still charge for the 'transfer' since you fill out the paperwork and they did the background. Another solution might possibly be if you have a good relationship with your FFL dealer, and your FFL wanted to buy the gun himself. They might pay a bit less than it cost, but you have to consider the return shipping and restock fees.