Does Buns On Fire assume any responsibility for a franchisee's securities offering?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
"NEITHER SMYA VENTURES LLC NOR ANY OF ITS AFFILIATES ASSUMES ANY RESPONSIBILITY WITH RESPECT TO THIS OFFERING AND/OR THE ADEQUACY OR ACCURACY OF THE INFORMATION PRESENTED HEREIN, INCLUDING ANY STATEMENTS MADE WITH RESPECT TO ANY OF THEM. NEITHER SMYA VENTURES LLC NOR ANY OF ITS AFFILIATES ENDORSES OR MAKES ANY RECOMMENDATION WITH RESPECT TO THE INVESTMENT CONTEMPLATED BY THIS OFFERING."
(iii.) Franchisee and each of its owners agrees to indemnify, defend and hold harmless the Franchisor and its affiliates, and their respective officers, directors, employees and agents, from any and all claims, demands, liabilities, and all costs and expenses (including, without limitation, reasonable attorneys' fees) incurred in the defense of such claims, demands or liabilities, arising from the offer or sale of such securities, whether asserted by a purchaser of any such security or by a governmental agency. The Franchisor shall have the right (but not the obligation) to defend any such claims, demands or liabilities and/or to participate in the defense of any action to which the Franchisor or any of its affiliates or any of their respective officers, directors, employees or agents is named as a party.
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 does not assume any responsibility for a franchisee's securities offering. The FDD explicitly states that neither Buns On Fire nor its affiliates assume responsibility for the offering's adequacy or accuracy. They also do not endorse or make recommendations regarding the investment.
Furthermore, the franchisee is required to indemnify Buns On Fire and its affiliates from any claims, demands, or liabilities arising from the offer or sale of securities. This includes all costs and expenses, such as reasonable attorney's fees, incurred in defending against such claims. Buns On Fire retains the right, but not the obligation, to defend any claims or participate in the defense of any action where Buns On Fire or its affiliates are named as a party.
This arrangement places the full responsibility for the securities offering on the franchisee. A prospective franchisee should seek legal and financial advice regarding their securities offering to ensure compliance with all applicable laws and regulations. They should also understand that they are solely responsible for any liabilities arising from their securities offering.