Who bears the expense of acquiring the site location for a Buns On Fire franchise?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
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
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 an approved location for the Franchised Business. Specifically, the franchisee must acquire or lease the premises within 90 days of the franchise agreement's execution.
This means a prospective Buns On Fire franchisee will need to factor in the costs associated with securing a location, whether through a lease or purchase, as part of their initial investment. These costs can vary significantly depending on the location's size, condition, and market demand. It is common in the franchise industry for franchisees to bear the responsibility for site acquisition costs, as the location is integral to the franchisee's operation and success.
Buns On Fire, however, retains some control over the site. The franchisor has the right to require the franchisee to execute a Site Addendum Agreement or conditionally assign the lease to the Franchisor. The franchisor also wants to ensure that the lease contains provisions that allow Buns On Fire to receive notice of any default by the franchisee and to have the right to cure such default. This ensures that Buns On Fire can protect its brand and the interests of the franchise system.