Can the assignee, transferee, or purchaser of a Buns On Fire franchise be in the same business as the Franchisor?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii.) Franchisee agrees that Franchisor has the right, now or in the future, to purchase, merge, acquire or affiliate with an existing competitive or non-competitive franchise network, chain or any other business, regardless of the location of that chain's or business' facilities, and to operate, franchise or license those businesses and/or facilities as "Buns on Fire" operating under the Marks or any other marks following Franchisor's purchase, merger, acquisition or affiliation, regardless of the location of these facilities, except that if such businesses are located within any Protected Territory granted to Franchisee, those businesses will not change their names to "Buns on Fire".
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Buns On Fire has the right to purchase, merge, acquire, or affiliate with an existing competitive franchise network, chain, or any other business. This includes businesses regardless of their location.
Buns On Fire can operate, franchise, or license these businesses and/or facilities as Buns On Fire, using the Buns On Fire marks or any other marks, following a purchase, merger, acquisition, or affiliation. The only exception to this is if these businesses are located within any Protected Territory granted to a franchisee, in which case they will not change their names to "Buns on Fire".
This clause protects Buns On Fire's ability to grow and evolve by acquiring or merging with competitors or other businesses. However, it also assures franchisees that Buns On Fire will not rebrand a competing business within their protected territory under the Buns On Fire name. This ensures that the franchisee's market share within their territory is not directly undermined by a rebranded competitor.