What constitutes a 'transfer' of a Buns On Fire franchise by the franchisee?
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. |
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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, a transfer by the franchisee is broadly defined. It encompasses not only the transfer of the franchise agreement itself but also the transfer of the business's assets or any change in the ownership structure of the franchise. This broad definition means that franchisees need to be aware that any significant change in how the business is owned or controlled could be considered a transfer under the terms of the Franchise Agreement.
This definition has important implications for franchisees. For example, if a franchisee wants to sell their Buns On Fire location, bring in a business partner, or change the ownership percentages within their existing company, all of these actions would likely be considered a transfer. As such, they would be subject to the franchisor's approval process, which includes meeting certain conditions. These conditions typically involve ensuring the proposed transferee is qualified, all outstanding payments to Buns On Fire are settled, a general release is signed, the transferee completes the required training, and the transfer fee is paid.
Buns On Fire maintains the right to approve all transfers, giving them significant control over who becomes a franchisee within their system. Furthermore, Buns On Fire has the right of first refusal, meaning they can match any offer a franchisee receives from a potential buyer. They also have the option to purchase the franchise business upon termination or non-renewal for the price offered to the franchisee. These provisions are designed to protect the integrity and consistency of the Buns On Fire brand and network.
In the event of the death or disability of a Buns On Fire franchisee, the franchise must be assigned to an approved buyer within 12 months or transferred to an heir or representative. This ensures business continuity and adherence to Buns On Fire's standards, even in unforeseen circumstances. Franchisees should carefully consider these transfer provisions and discuss any potential future ownership changes with Buns On Fire to ensure compliance with the Franchise Agreement.