Does the deletion of sections 24.10.4 and 22.1 apply to all Buns On Fire franchisees?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
knowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement by any franchisor, franchise seller, or other person acting on behalf of franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
- The following sections of the Franchise Agreement are hereby deleted: 22.1.1 – 22.1.6, 22.1.8 and 22.1.12.
[SIGNATURE PAGE FOLLOWS.]
| Date: | SMYA VENTURES LLC |
|---|---|
| By: Name: Title: | |
| Date: | FRANCHISEE By: Name: Title: |
SOUTH DAKOTA ADDENDUM TO FRANCHISE AGREEMENT
Notwithstanding anything to the contrary set forth in the Franchise Agreement, the following provision shall supersede and apply:
- Section 4.01 of the Franchisee Agreement shall be amended to add the following language:
"Notwithstanding the foregoing, payment of the Initial Franchise Fee shall be deferred until we have satisfied our pre-opening obligations and you have commenced operation of your Buns on Fire Restaurant."
- The Franchise Agreement and any document signed in connection with the franchise are supplemented with the following language:
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement by any franchisor, franchise seller, or other person acting on behalf of franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
- The following sections of the Franchise Agreement are hereby deleted: 22.1.1 – 22.1.6, 22.1.8 and 22.1.12.
SMYA VENTURES LLC
VIRGINIA ADDENDUM TO FRANCHISE AGREEMENT
Notwithstanding anything to the contrary set forth in the Franchise Agreement, the following provision shall supersede and apply:
- Section 4.01 of the Franchisee Agreement shall be amended to add the following language:
"The Virginia State Corporation Commission's Division of Securities and Retail Franchising requires us to defer payment of the initial franchise fee and other initial payments owed by franchisees to the franchisor until the franchisor has completed its pre-opening obligations under the franchise agreement."
- The Franchise Agreement and any document signed in connection with the franchise are supplemented with the following language:
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement by any franchisor, franchise seller, or other person acting on behalf of franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
- The following sections of the Franchise Agreement are hereby deleted: 22.1.1 – 22.1.6, 22.1.8 and 22.1.12.
SMYA VENTURES LLC
WASHINGTON ADDENDUM TO FRANCHISE AGREEMENT, DISCLOSURE ACKNOWLEDGEMENT STATEMENT, AND RELATED AGREEMENTS
Notwithstanding anything to the contrary set forth in the Franchise Agreement, Disclosure Acknowledgement Statement and Related Agreements, the following provisions will supersede and apply:
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- In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation. In addition, if litigation is not precluded by the Franchise Agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
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- A release or waiver of rights executed by a Franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the Franchise Agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act as such as a right to a jury trial, may not be enforceable.
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- RCW 19.100.180 which may supersede the Franchise Agreement in your relationship with the Franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the Franchise Agreement in your relationship with the Franchisor including the areas of termination and renewal of your franchise.
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- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
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- Transfer fees are collectable to the extent that they reflect the Franchisor's reasonable estimated or actual costs in effecting a transfer.
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- Section 4.01 of the Franchisee Agreement shall be amended to add the following language:
- "In lieu of an impound of franchise fees, the Franchisor will not require or accept the payment of any initial franchise fees until the franchisee has (a) received all pre-opening and initial training obligations that it is entitled to under the franchise agreement or offering circular, and (b) is open for business."
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- Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). As a result, any provisions contained in the franchise agreement or elsewhere that
conflict with these limitations are void and unenforceable in Washington.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the deletion of sections 24.10.4 and 22.1 does not apply to all franchisees. Section 24.10.4 of the Franchise Agreement, which requires venue to be limited to the state, county, and judicial district in which Buns On Fire's principal place of business is located, is deleted only from all Franchise Agreements for residents of the State of Maryland and/or franchises to be operated in the State of Maryland. Section 22.1, titled "Your Acknowledgments," is also deleted specifically from all Franchise Agreements for residents of the State of Maryland and/or franchises to be operated in the State of Maryland.
Additionally, Section 22.1, titled "Your Acknowledgments" is deleted from all Illinois Franchise Agreements.
Therefore, these deletions are specific to franchisees in Maryland and Illinois and do not apply universally to all Buns On Fire franchisees. Prospective franchisees outside of Maryland and Illinois should be aware that Section 24.10.4 regarding venue and Section 22.1 regarding franchisee acknowledgments remain in effect for their franchise agreements.