How does Buns On Fire define 'Non-Traditional Sites' in relation to Protected Territories?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
ng the restaurant determined by shortest driving distance using Google Maps or a similar mapping program. Except for Non-Traditional Sites as defined below and in Article 1.4 of the Franchise Agreement, Franchisor agrees not to establish another Franchised Business within the Franchisee's Protected Territory. The Protected Territory will be a substantially smaller area around the Franchise Business if it is located in an urban or highly populated setting. For locations in urban or highly populated areas the Protected Territory may be an area of only several blocks around the location approved for the Franchise Business, and for locations in suburban areas the Territory may be up to a two-mile area surrounding the restaurant, also determined by shortest driving distan
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, the franchisor retains the right to operate or grant others the right to operate Buns On Fire Restaurants at Non-Traditional Sites anywhere under any terms and conditions they deem appropriate. This right exists regardless of the proximity to a franchisee's Buns On Fire Restaurant. This means that even if a franchisee has a Protected Territory, Buns On Fire can still establish or allow others to establish restaurants at Non-Traditional Sites within that territory.
The FDD excerpt specifies that the franchisor will not establish another franchised business within a franchisee's Protected Territory, except for Non-Traditional Sites. This exception is significant because it means that a franchisee's Protected Territory does not prevent Buns On Fire from opening Non-Traditional Sites nearby, potentially increasing competition for the franchisee. The designation of a Protected Territory does not prevent other franchised businesses from soliciting, marketing, or advertising to customers within that Protected Territory; it only means that Buns On Fire agrees not to establish franchised businesses within the Protected Territory, again with the exception of Non-Traditional Sites.
Prospective franchisees should carefully consider the implications of Non-Traditional Sites on their Protected Territory. While the FDD excerpt does not define 'Non-Traditional Sites', it is defined in Article 1.4 of the Franchise Agreement. It would be prudent to review Article 1.4 of the Franchise Agreement to understand what constitutes a Non-Traditional Site and how these sites might impact the potential revenue and customer base of a Buns On Fire franchise. Understanding the scope and potential locations of Non-Traditional Sites is crucial for assessing the true value and security of the Protected Territory offered by Buns On Fire.