Which articles of the Buns On Fire Franchise Agreement address the franchisee's fee obligations?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
| | 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. Unless we grant you a term that is longer than the remaining term under this Franchise Agreement, you will not be required make an Initial Franchise Fee payment for the relocated Franchised Business. However, you will be required to pay a Relocation Fee of twenty-five hundred dollars ($2,500) to us upon execution of the new Franchise Agreement.
1.4 Rights Reserved to Franchisor
Except as limited by Section 1.1, Franchisor and its affiliates retain all rights to establish and operate Franchised Businesses and to use the Marks outside of Franchisee's Protected Territory, including, without limitation:
(i.) to establish and operate and granting others the rights to establishing and operating a Buns on Fire restaurant or other venues offering and selling premium halal cuisine and other identical, comparable, or related goods and services through the same, similar or dissimilar channels of
- distribution under trade and service marks other than the Marks and under any terms and conditions Franchisor deems appropriate at the sole discretion of the Franchisor;
- (ii.) to produce, offer and sell, and granting others the rights to establishing and operating a Buns on Fire restaurant or other venue offering and selling premium halal cuisine and other identical, comparable, or related goods and services through the same, similar, or dissimilar channels of distribution under the Marks and under any terms and conditions the Franchisor deems appropriate at the sole discretion of the Franchisor;
- (iii.) to operate and granting others the right to operating Buns on Fire restaurants at "Non-Traditional Sites" under any terms and conditions the Franchisor deems appropriate at the sole discretion of the Franchisor, regardless of proximity to the Franchised Business.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 22–24)
What This Means (2025 FDD)
Based on the 2025 Buns On Fire Franchise Disclosure Document, several sections of the Franchise Agreement address franchisee fee obligations.
Article I discusses the initial franchise fee, specifying that payment may be deferred until Buns On Fire has fulfilled its pre-opening obligations and the franchisee has commenced operations. This deferral is particularly relevant for franchisees in Illinois, North Dakota, South Dakota and Virginia due to state-specific addenda. Additionally, Article I outlines a relocation fee of $2,500 required if a franchisee moves to a new location after approval from Buns On Fire.
Article II touches on premises-related obligations, indicating that franchisees must secure an approved location within 90 days and may be required to sign a Site Addendum Agreement or conditionally assign the lease to Buns On Fire. Furthermore, Article XX discusses transfer fees, stating that if a franchisee assigns, transfers, or sells the franchise, Buns On Fire will collect a non-refundable transfer fee equal to 50% of the then-current Initial Franchise Fee. The franchisee must also ensure that the new party agrees to subordinate their obligations to Buns On Fire, including royalty and advertising fees.
Item 8 mentions that franchisees will be required to sign personal guarantees related to the payment of fees payable to Buns On Fire. These guarantees are attached to the Franchise Agreement. These multiple articles collectively define the various fees a franchisee may encounter during the franchise term, from initial investment to ongoing operational costs and potential transfer or relocation expenses.