What criteria must a Transferee meet to be approved by Buns On Fire after the death or incapacity of the franchisee?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i.) The Transferee must complete, and be approved through, Franchisor's standard franchise selection process including satisfactorily demonstrating to Franchisor that they meet the financial character and managerial criteria that Franchisor is then applying in considering applications for new franchisees;
- (ii.) The Transferee shall agree, in writing, to personally assume liability for and to perform all the terms and conditions of this Agreement to the same extent as the original Franchisee; and
- (iii.) If the Transferee is not approved, the Franchisee or legal representative of the Transferee shall use their best efforts to sell the Franchised Business to another party that is acceptable to Franchisor within twelve (12) months from the date of the Franchisee's death or permanent incapacity or disability. Further, the Franchisor shall have the option, but is not obligated, to operate or manage the Franchised Business for the account of Franchisee's estate until the deceased or incapacitated Franchisee's interest is transferred to another party acceptable to Franchisor. Should Franchisor choose to operate or manage the Franchised Business, Franchisor will make a complete accounting and will forward fifty percent (50%) of the net income for the operation of the Franchised Business to Franchisee's estate. If the conveyance
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, if a franchisee dies or becomes incapacitated, the proposed transferee must meet specific criteria to be approved by Buns On Fire. The transferee must first complete and be approved through Buns On Fire's standard franchise selection process. This includes demonstrating that they meet the financial, character, and managerial criteria that Buns On Fire is applying at the time for new franchisee applications.
In addition to meeting the standard franchisee qualifications, the transferee must agree in writing to personally assume liability for and perform all the terms and conditions of the franchise agreement. This ensures that the transferee is fully responsible for upholding the obligations of the original franchisee.
If the proposed transferee is not approved by Buns On Fire, the franchisee's legal representative is required to make their best effort to sell the franchised business to another party acceptable to Buns On Fire within twelve months of the franchisee's death or permanent incapacity. Buns On Fire has the option, but not the obligation, to operate or manage the franchised business for the account of the franchisee's estate until the interest is transferred to an approved party. If Buns On Fire manages the business, they will provide a complete accounting and forward fifty percent of the net income to the franchisee's estate.