How does Buns On Fire amend Item 12 regarding territory?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Local Advertising and Marketing: One percent (1%) of Gross Revenue. | | H. | | Address for notice to FRANCHISEE shall be at the Restaurant, unless another address is inserted | | here: []. |
ARTICLE I GRANT OF FRANCHISE
1.1 Grant and Protected Territory
Subject to the terms and conditions contained herein, the Franchisor hereby grants to Franchisee a non-exclusive right to operate a "Buns on Fire" restaurant at the location approved by the Franchisor in accordance with the provisions of this Agreement (the "Franchised Business"), and a non-exclusive license to use the Marks in the operation thereof, with all ownership rights in the Marks remaining with Franchisor. Except as otherwise provided in this Agreement, the Franchisor shall not establish nor license anyone other than Franchisee to establish any Franchised Business under the System within the territory specified in Exhibit "A" ("Protected Territory").
1.2 Site Selection Timeframe
Unless an approved location was selected by Franchisee at the time this Agreement is executed, Franchisee shall select the location of the Franchised Business, subject to the Franchisor's approval, within ninety (90) days after the effective date of this Agreement.
1.3 No Change of Franchise Location
The franchise location described in Exhibit "A" may not be modified or changed by the Franchisee without Franchisor's prior written approval. The Franchisee must request Franchisor's prior written approval in writing. To modify or change location, the Franchisee must be current in all obligations to Franchisor, whether under this Agreement or any other agreement, and must not be defaulting under this or any other agreement with Franchisor.
In the event that Franchisee's request to modify or change location is approved by the Franchisor, the Franchisee will be required, and must sign, Franchisor's then-current form of the Franchise Agreement. The then-current Franchise Agreement may contain different terms and conditions, for a term that may be equal to the remaining term of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Buns On Fire does not explicitly amend Item 12 regarding territory within the provided excerpts. However, Article I, Section 1.1, addresses the grant of a franchise and protected territory. It states that, subject to the terms and conditions of the agreement, Buns On Fire grants the franchisee a non-exclusive right to operate a restaurant at an approved location and a non-exclusive license to use the marks, with the franchisor retaining all ownership rights. The franchisor will not establish or license others to establish a franchised business under the system within the territory specified in Exhibit "A", which is referred to as the "Protected Territory."
Section 1.3 addresses changes to the franchise location. The franchisee cannot modify or change the location described in Exhibit "A" without prior written approval from Buns On Fire. To request a change, the franchisee must be current on all obligations and not in default under any agreement with the franchisor. If the relocation is approved, the franchisee will be required to sign the franchisor's current form of the Franchise Agreement, which may contain different terms and conditions for a term equal to the remaining term of the original agreement.
In the event of relocation, Buns On Fire does not require an additional Initial Franchise Fee payment unless the new term is longer than the remaining term of the original agreement. However, the franchisee must pay a Relocation Fee of $2,500 upon execution of the new Franchise Agreement. This outlines the conditions under which a franchisee can request and potentially be approved to change their Buns On Fire location, and what fees are associated with such a change.