What constitutes a breach of the Buns On Fire Franchise Agreement that could impact receipts?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of a relocation of the Franchised Business, Franchisee shall promptly remove from the first Franchised Business premises, and discontinue using for any purposes, any and all signs, fixtures, furniture, posters, furnishings, equipment, menus, advertising materials, stationery supplies, forms and other articles which display any of the Marks or any distinctive features or designs associated with Buns on Fire. Furthermore, Franchisee shall, at Franchisee's expense, immediately make such modifications or alterations as may be necessary to distinguish the first Franchised Business so clearly from its former appearance and from other Buns on Fire restaurants and to prevent any possibility of confusion therewith by the public (including, without limitation, removal of all distinctive physical and structural features identifying Buns on Fire and removal of all distinctive signs and emblems). Franchisee shall, at Franchisee's expense, make such specific additional changes as the Franchisor may reasonably request for this purpose. If Franchisee fails to initiate immediately or complete such alterations within such period of time as the Franchisor deems appropriate, Franchisee agrees that the Franchisor or its designated agents may enter the premises of the first Franchised Business and adjacent areas at any time to make such alterations, at Franchisee's sole risk and expense, without responsibility for any actual or consequential damages to the property of Franchisee or others, and without liability for trespass or other tort or criminal act. Franchisee expressly acknowledges that Franchisee's failure to make such alterations will cause irreparable injury to the Franchisor and consents to entry, at Franchisee's expense, of an ex-parte order by a court of competent jurisdiction authorizing the Franchisor or its agents to take such action, if the Franchisor seeks such an order. Compliance with the foregoing shall be a condition subsequent to the Franchisor's approval of any relocation request by Franchisee, and in the event complete de-identification of the first Franchised Business premises is not promptly and completely undertaken, the Franchisor may then revoke its permission for relocation and declare a default under this Agreement pursuant to Article XVII hereof.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, a franchisee's failure to properly de-identify a relocated business can be considered a breach of the Franchise Agreement, potentially impacting receipts. Specifically, upon relocating a Buns On Fire franchise, the franchisee is responsible for removing all signs, fixtures, and materials displaying Buns On Fire's marks from the original location. They must also modify the original premises to clearly differentiate it from other Buns On Fire restaurants to avoid public confusion.
If the franchisee does not promptly undertake these alterations, Buns On Fire has the right to enter the premises and make the changes themselves at the franchisee's expense. The franchisee acknowledges that failure to make these alterations will cause irreparable injury to Buns On Fire, and consents to an ex-parte court order allowing Buns On Fire to take such action.
Compliance with de-identification is a condition for Buns On Fire's approval of the relocation. If the franchisee fails to completely de-identify the original business, Buns On Fire can revoke permission for the relocation and declare a default under the Franchise Agreement. This default could lead to termination of the agreement, which would directly impact the franchisee's ability to generate receipts under the Buns On Fire brand.