What conditions must be met for the Buns On Fire franchisor to approve a transfer of the franchise?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
| k. "Transfer" by franchisee— defined | XX | Includes transfer of contract, of assets or any ownership change. |
|---|---|---|
| 1. Franchisor approval of | XX | We have the right to approval all transfers. |
| transfer by franchisee | ||
| m. Conditions for franchisor approval of transfer | XX | Transferee qualifies, all amounts due are paid in full, you sign a general release in our favor, transferee completes training, transfer fee paid, then-current contract signed |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 41–43)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, the franchisor has the right to approve all franchise transfers. For Buns On Fire to approve a transfer, several conditions must be met. The potential transferee must meet the franchisor's qualifications. Additionally, all outstanding amounts owed to Buns On Fire must be paid in full before the transfer can be approved.
As part of the transfer process, the franchisee must sign a general release in favor of Buns On Fire, which typically means releasing the franchisor from any potential liabilities or claims. The transferee is also required to complete the then-current training program to ensure they are equipped to operate the franchise according to Buns On Fire's standards.
Finally, the franchisee must pay a transfer fee to Buns On Fire, and the transferee must sign the then-current franchise agreement. These conditions ensure that the new franchisee is fully trained, financially sound, and legally bound to the current terms and conditions set by Buns On Fire. This is a fairly standard practice in franchising, as franchisors want to ensure that any new franchisees are well-qualified and committed to the brand.