Who bears the expense of acquiring the site for a Buns On Fire franchise?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
2.1 Franchised Business Premises
- (i.) Franchisee shall operate the Franchised Business from a location in the Protected Territory. Franchisee shall acquire or lease within ninety (90) days from the date of execution of this Agreement, an approved premises for the Franchised Business. The Franchisor shall have the right in its sole discretion, to require:
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- Franchisee to execute a Site Addendum Agreement in the form attached hereto;
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- Franchisee to conditionally assign such lease to the Franchisor (with the consent of the lessor, if required) by conditional lease assignment provisions in form annexed to Franchise Agreement as Exhibit "C" in order to secure performance of any and all of Franchisee's liabilities and obligations to the Franchisor; or
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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 is responsible for acquiring or leasing the premises for their franchised business. Specifically, the franchisee must secure an approved location within 90 days of signing the franchise agreement.
This means a prospective Buns On Fire franchisee will need to factor in the costs associated with either purchasing or leasing a suitable site. These costs can include down payments, security deposits, monthly rent or mortgage payments, property taxes, and any necessary build-out or renovation expenses to meet Buns On Fire's standards. The franchisor retains the right to require the franchisee to execute a Site Addendum Agreement and to conditionally assign the lease to Buns On Fire to secure the franchisee's obligations.
Buns On Fire also has the right to approve the premises. The franchisee needs to get approval from Buns On Fire on the location they have chosen. This approval process ensures that the location meets the brand's criteria for visibility, accessibility, and market demographics, but it also means the franchisee must present options that align with Buns On Fire's strategic interests. The lease terms are also subject to approval by Buns On Fire.
Furthermore, if the franchisee wishes to relocate the Buns On Fire business, they are responsible for the expenses associated with de-identifying the original location. This includes removing signs and other branded materials and modifying the premises to remove any association with the Buns On Fire brand. This ensures that the former location does not continue to trade on the Buns On Fire name or confuse customers.