What acknowledgment statement is required in the Buns On Fire receipt?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
For franchisees and franchises that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington or Wisconsin, this questionnaire is not intended and does not constitute waiver of any claims under any applicable state franchise law, including fraud in the inducement; or a disclaimer of any reliance on any statement made by any person acting on behalf of the Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, there are specific acknowledgment statements required for franchisees, particularly concerning state franchise laws. For franchisees operating in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, any acknowledgment signed in connection with starting the franchise cannot waive claims under applicable state franchise laws, including those related to fraud in the inducement. This also means franchisees cannot disclaim reliance on statements made by Buns On Fire or its representatives. This provision takes precedence over any other conflicting terms in franchise documents.
Furthermore, the FDD includes state-specific addenda that may require additional statements or disclosures. For example, in Hawaii, the receipts must include a statement that the franchise has been filed under the Franchise Investment Law, but that filing does not constitute approval or endorsement by the Director of Commerce and Consumer Affairs. Similarly, Illinois requires a statement that by reading the disclosure document, the franchisee is not agreeing to, acknowledging, or making any representations to Buns On Fire.
These acknowledgments are designed to protect franchisees' rights and ensure they are aware of their legal protections under state laws. It prevents Buns On Fire from using acknowledgments to circumvent these protections. Prospective franchisees should carefully review these state-specific addenda to understand the exact wording and implications of these required statements in their respective states.
It is important for potential Buns On Fire franchisees to consult with a franchise attorney to fully understand their rights and obligations, especially concerning these acknowledgment statements and how they interact with state franchise laws. This will help ensure they are making informed decisions and are adequately protected throughout the franchise relationship.