What is the cure period for operational defaults under the Buns On Fire franchise agreement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Article in the Franchise Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | IV | 10 years. |
| b. Renewal or extension | IV | One additional term of 10 years. You have been in substantial compliance with agreement. You pay the renewal fee. You may have to remodel your location, at your expense. |
| c. Requirement for franchisee to renew or extend | IV | You may be asked to sign a contract with materially different terms and conditions than your original contract, pay the renewal fee, comply with any new training requirements and serve notice of intention to renew not less than twelve (12) months nor more than eighteen (18) months prior to the expiration of the agreement. You may be required to sign a general release in favor of us. |
| d. Termination by franchisee | None. | The Franchise Agreement does not provide for this. But you may seek to terminate on any grounds available to you at law. |
| e. Termination by franchisor | Not Applicable | Not Applicable |
| without cause | ||
| f. Termination by franchisor with | XVII | We can terminate only if you commit any one |
| cause | of several listed violations | |
| g. "Cause" defined—curable defaults | XVII | 30 days for operations defaults, 30 days for monetary defaults, 24 hours for health code violations, as set forth in the Franchise Agreement |
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 cure period for operational defaults is 30 days. This means that if Buns On Fire determines a franchisee is not meeting the operational standards outlined in the franchise agreement, the franchisee has 30 days to correct the issues.
This 30-day cure period is a standard practice in franchising, allowing franchisees time to address deficiencies before Buns On Fire can terminate the agreement. However, it's important to note that this cure period applies specifically to operational defaults. Other types of defaults, such as monetary defaults or health code violations, may have different cure periods, as outlined in the franchise agreement.
Prospective Buns On Fire franchisees should carefully review the definition of "operational defaults" in the franchise agreement to understand what types of issues fall under this category and what steps they need to take to remedy such defaults within the 30-day period. Failure to cure an operational default within the specified timeframe could result in termination of the franchise agreement, leading to significant financial losses for the franchisee.