For Buns On Fire, what agreements does the Guaranty apply to?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBITS:
Exhibit A Location Addendum
Exhibit B. Guaranty (to Franchisor)
Exhibit C. Conditional Lease Assignment Provisions
Exhibit D. Site Location Addendum
Exhibit E. Internet, Website, and Telephone Listing Agreement
Exhibit F. State Specific Addendum
Exhibit G. Franchisee Disclosure Acknowledgement Statement
Exhibit H. Questionnaire
Exhibit I. Training Completion Agreement and Release
Exhibit J. [Reserved].
Exhibit K. Guaranty (Exclusive Supplier)
Exhibit L. Electronic Transfer Authorization
Exhibit M. Power of Attorney
Exhibit N. ADA Certificate
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 two Guaranty agreements: one to the Franchisor and one to the Exclusive Supplier. These are listed as Exhibit B and Exhibit K, respectively.
Exhibit B, the Guaranty to the Franchisor, likely ensures that the franchisee fulfills their obligations under the Franchise Agreement. This could include financial obligations like paying royalties or adhering to operational standards. A guarantor, often a principal owner or related party, promises to cover these obligations if the franchisee fails to do so.
Exhibit K, the Guaranty to the Exclusive Supplier, suggests that Buns On Fire requires franchisees to source products from a specific supplier. The guarantor would then ensure the franchisee pays the supplier for these goods. This arrangement is common in franchising to maintain quality control and consistency across all locations. Prospective franchisees should carefully review the terms of both guaranties to understand the full scope of their financial responsibilities and potential liabilities.