What criteria must a Transferee meet to be approved through the Buns On Fire franchise selection process?
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 FDD, a Transferee (someone to whom a franchise is being transferred) must meet specific criteria to be approved by Buns On Fire. The Transferee must successfully complete 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 using at the time for evaluating new franchisee applications.
In addition to meeting the standard selection criteria, the Transferee must agree in writing to assume all the responsibilities and obligations of the original franchisee. This means the Transferee will be bound by the terms and conditions of the existing Franchise Agreement to the same extent as the original franchisee.
If Buns On Fire does not approve the Transferee, the original franchisee (or their legal representative) is required to make their best effort to sell the franchise to another party that Buns On Fire finds acceptable. This sale must occur within 12 months if the reason for the transfer is the franchisee's death, permanent incapacity, or disability. This ensures that Buns On Fire maintains control over who operates a franchise under their brand and that the brand standards are upheld.