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What is the exception to the Lessor's reliance on the Buns On Fire termination notice?

Buns_On_Fire Franchise · 2025 FDD

Answer from 2025 FDD Document

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 made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

Source: Item 23 — RECEIPTS (FDD pages 49–200)

What This Means (2025 FDD)

According to the 2025 Buns On Fire Franchise Disclosure Document, a Lessor can rely on the termination notice provided by Buns On Fire, with no obligation to investigate its execution or accuracy. However, this reliance is superseded by Minnesota state law. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This addendum ensures that franchisees in Minnesota retain their rights under state law, regardless of any agreements made during the commencement of the franchise relationship.

This means that while the lease agreement generally allows the Lessor to act on Buns On Fire's termination notice without further inquiry, Minnesota franchisees retain the right to challenge the validity of that termination if they believe it was based on fraudulent information or actions by Buns On Fire. This provision is designed to protect franchisees from potentially overreaching franchisors and ensures that state franchise laws take precedence over contractual terms.

For a prospective Buns On Fire franchisee in Minnesota, this addendum provides an additional layer of protection. It means that even if the lease agreement appears to give significant power to the franchisor in terms of termination and assignment, the franchisee retains the right to seek legal recourse if they believe the termination was unjust or based on misrepresentations. This is a crucial consideration for franchisees as it ensures that their rights under Minnesota law are upheld throughout the franchise relationship.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.