Who is the Buns On Fire agreement binding upon, besides the parties involved?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
3. That such lease contains substantially the following provisions:
- a. "Anything contained in this lease to the contrary notwithstanding, Lessor agrees that without its consent, this lease and the right, title and interest of the Lessee hereunder may be assigned by the Lessee to SMYA Ventures LLC, an Illinois limited liability company or its designee."
- b. "Lessee hereby agrees that Lessor may, upon the written request of Buns on Fire, disclose to Buns on Fire all reports, information or data in Lessor's possession with respect to sales made in, upon, or from the leased premises."
- c. "Lessor shall give written notice to Buns on Fire (concurrently with the giving of such notice to Lessee) of any default by Lessee under the lease and Buns on Fire shall have the right, in its sole discretion, to cure any such default. Such notice shall be sent to Buns on Fire at its headquarters, or such other address as Buns on Fire may specify in writing to Lessor."
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, under certain conditions, the lease agreement for the franchised business premises can be binding upon the lessor (the landlord) in addition to the franchisee and Buns On Fire. Specifically, if Buns On Fire exercises its option to take over the lease upon termination or expiration of the franchise agreement, the lessor is bound to transfer the lease to Buns On Fire.
This means that if a Buns On Fire franchisee's agreement is terminated, Buns On Fire has the option to step in and assume the lease, even without the lessor's explicit consent at that time. The lessor must provide Buns On Fire with notice of any default by the franchisee and allow Buns On Fire to cure the default. The lessor must also disclose sales data to Buns On Fire upon request.
For a prospective Buns On Fire franchisee, this clause offers some assurance that in the event of a transfer or termination, Buns On Fire can maintain control of the location. However, it also means the franchisee's lease terms are not solely between them and the lessor, as Buns On Fire has rights and influence over the lease agreement. The franchisee should carefully review Exhibit C, which outlines the conditional lease assignment provisions, and understand their obligations to both Buns On Fire and the lessor.