Does the Buns On Fire franchise agreement contain any representations, warranties, guarantees, or agreements made to the franchisee regarding the prospects for successful operations?
Buns_On_Fire Franchise · 2025 FDDAnswer 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 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.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Buns On Fire franchise agreement itself does not appear to contain explicit representations, warranties, or guarantees regarding the prospects for successful operations. However, the document includes addenda for California and Hawaii that address disclaimers and waivers related to franchisor representations. These addenda state that no statement or questionnaire signed by a franchisee can waive claims of fraud in the inducement or disclaim reliance on statements made by the franchisor. This suggests that while the agreement may not offer explicit guarantees, franchisees in California and Hawaii retain their rights regarding franchisor representations.
Specifically, the California and Hawaii addenda aim to protect franchisees from unknowingly waiving their rights to claim fraud or reliance on the franchisor's statements during the franchise commencement. This is a notable protection, ensuring that franchisees in these states can hold Buns On Fire accountable for any misrepresentations made during the franchise sales process.
Prospective franchisees should carefully review the entire Franchise Agreement and its addenda, paying close attention to any disclaimers or waivers. It is also advisable to consult with a franchise attorney to fully understand their rights and obligations, especially concerning representations made by Buns On Fire during the pre-sale period. Understanding these protections can help franchisees make informed decisions and protect their investment.