Does Buns On Fire assume any employer responsibilities for the franchisee's employees?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
by Franchisor and used in the System. Further, except as specifically stated in Article I hereof, nothing contained herein shall be construed as limiting Franchisor's right, title or interest in the "Buns on Fire" name, Marks, trade secrets, methods, procedures and techniques which are a part of the System or Franchisor's sole and exclusive right to register trade secrets, methods, procedures and techniques.
13.4 Identification of Independent Ownership
In all public records and prominently displayed at the Franchised Business and in Franchisee's relationship with third parties, including but not limited to, employees and vendors, as well as on letterheads and business forms, Franchisee shall indicate clearly the independent ownership of the Franchised Business, and that the operations of same are separate and distinct from the operation of Franchisor's business. Franchisor shall have the absolute right to approve and/or supply any sign displays containing the foregoing.
13.5 Taxes
The Franchisor shall have no liability for any sales, use, excise, gross receipts, property or other taxes, whether levied upon Franchisee, the Franchised Business or its assets, or upon Franchisor in connection with sales made, services performed or business conducted by Franchisee, except for any taxes Franchisor is required by law to collect from Franchisee with respect to purchases from Franchisor or for Franchisor's own income tax liability.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the franchisee bears full responsibility for the management and operation of the business. Buns On Fire emphasizes that the franchisee is an independent business. Franchisees must indicate clearly the independent ownership of their franchised business in all public records, at the business location, and in relationships with third parties, including employees and vendors. This includes indicating that their operations are separate and distinct from Buns On Fire's business.
Buns On Fire requires franchisees to maintain Employer's Liability and Workers' Compensation insurance, as mandated by the state or locality where the Buns On Fire restaurant operates. The insurance policy must cover the acts or omissions of everyone performing services at the franchised business and protect against all acts of any persons who patronize the business.
Furthermore, the franchisee is responsible for compliance with the Americans with Disabilities Act (ADA). The franchisee must certify that the restaurant and its adjacent areas comply with all applicable federal, state, and local accessibility laws. The franchisee also agrees to indemnify Buns On Fire and its officers, directors, and employees from any claims, losses, costs, expenses, liabilities, compliance costs, and damages related to the franchisee's compliance with the ADA.