What are some examples of non-curable defaults that could lead to termination of a Buns On Fire franchise?
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 |
| h. "Cause" defined—non- curable defaults | XVII | Conviction of a felony, abandonment, unapproved transfers, bankruptcy, assignment for benefit of creditors, repeated violations; termination for cause of another contract between us and you. |
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, there are certain defaults that the franchisee cannot cure, which could lead to termination of the franchise agreement. These non-curable defaults include conviction of a felony, abandonment of the franchise, unapproved transfers of the franchise, bankruptcy, assignment for the benefit of creditors, repeated violations of the franchise agreement, or termination for cause of another contract between Buns On Fire and the franchisee.
These stipulations are important for a prospective Buns On Fire franchisee to understand because they represent serious breaches of the franchise agreement that cannot be remedied. Unlike curable defaults, where the franchisee has an opportunity to correct the issue within a specified timeframe, non-curable defaults provide Buns On Fire with the immediate right to terminate the agreement. This could result in the franchisee losing their investment and the right to operate the Buns On Fire franchise.
Many franchise agreements contain similar clauses regarding non-curable defaults, as they protect the franchisor's brand and reputation. Franchisees should carefully review the franchise agreement and fully understand what actions or events could trigger a non-curable default and subsequent termination. It is also important to note that the definition of these terms, such as 'repeated violations,' may be further clarified in the franchise agreement itself.