What article in the Buns On Fire franchise agreement outlines the franchisee's obligations for ongoing product/service purchases?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]
You must purchase or lease certain foods, beverages, equipment, supplies and products required for Buns on Fire Restaurant franchise from suppliers approved by us. We will provide a written list of approved suppliers and the foods, beverages and products subject to approved supplier requirements and will notify you of any additions or deletions from this list. We reserve the absolute right to update or otherwise modify this list from time to time, in our sole discretion, upon written notice to you. If you want to purchase products subject to our approved supplier requirements from a supplier who has not been previously approved by us, then you must, at your expense, send to us representative samples or specifications of that supplier's products or services, and certain other information about the supplier's products and business that we may request. We will also have the right to inspect the supplier's facilities and otherwise evaluate the proposed supplier and its products or services, and you must reimburse us for the expenses we incur to inspect and evaluate the supplier. Within thirty (30) days after receiving the necessary samples and information, we will notify you in writing as to whether the supplier's products or services comply with the uniformity requirements, quality standards and specifications established by us, and whether the supplier's business reputation, delivery performance, credit rating and other relevant information are satisfactory. If we do not respond in this time period, the supplier shall be deemed disapproved. The criteria for supplier approval are available to franchisees upon request. We reserve the right to approve or disapprove any requested supplier for any reason or no reason in our sole discretion.
In the future, you may be required to purchase other food, ingredients, supplies, merchandise, carpet, leasehold improvements, and/or decorations from us or our affiliates.
We estimate that purchases of food, beverages and products that meet our standards and specifications and purchases from designated or approved suppliers will constitute up to 80% of your initial expenditures to open your Buns on Fire Restaurant franchise, and approximately 60% of the annual ongoing expenditures to operate your Franchise Business.
Obligation to Sign Personal Guaranty with Us
As a Franchisee, you will be required to sign personal guarantees relating to the payment of fees payable to us (the "Personal Guaranty"). The Personal Guaranty is attached to the Franchise Agreement (which is attached to this Franchise Disclosure Document as Exhibit D).
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 22–24)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Item 8 discusses the restrictions on sources of products and services. It states that franchisees must purchase or lease certain foods, beverages, equipment, supplies, and products from suppliers approved by Buns On Fire. The document indicates that Buns On Fire will provide a written list of approved suppliers, which they may modify at their discretion.
If a franchisee wishes to use a non-approved supplier, they must submit samples and information about the supplier to Buns On Fire for approval, and the franchisee will bear the costs of inspection and evaluation. Buns On Fire has the right to approve or disapprove any supplier for any reason.
The FDD estimates that purchases from designated or approved suppliers will constitute up to 80% of the initial expenditures to open a Buns on Fire restaurant and approximately 60% of the annual ongoing expenditures to operate the franchise business. During the 2023 fiscal year, Buns On Fire did not receive any revenue or other material consideration from required purchases or leases by franchisees.