Does the Buns On Fire Franchise Agreement prevent the Franchisor from operating its own restaurants?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as limited by Section 1.1, Franchisor and its affiliates retain all rights to establish and operate Franchised Businesses and to use the Marks outside of Franchisee's Protected Territory, including, without limitation:
(i.) to establish and operate and granting others the rights to establishing and operating a Buns on Fire restaurant or other venues offering and selling premium halal cuisine and other identical, comparable, or related goods and services through the same, similar or dissimilar channels of
- distribution under trade and service marks other than the Marks and under any terms and conditions Franchisor deems appropriate at the sole discretion of the Franchisor;
- (ii.) to produce, offer and sell, and granting others the rights to establishing and operating a Buns on Fire restaurant or other venue offering and selling premium halal cuisine and other identical, comparable, or related goods and services through the same, similar, or dissimilar channels of distribution under the Marks and under any terms and conditions the Franchisor deems appropriate at the sole discretion of the Franchisor;
- (iii.) to operate and granting others the right to operating Buns on Fire restaurants at "Non-Traditional Sites" under any terms and conditions the Franchisor deems appropriate at the sole discretion of the Franchisor, regardless of proximity to the Franchised Business. As used in this Agreement, Non-Traditional Sites shall include, without limitation, military bases, hotels, motels, high schools, and college campuses, airports, subways, train stations, travel plazas, toll roads, beaches, parks and other seasonal facilities, government buildings and establishments, prisons, hospitals, convenience stores, cafeterias, snack bars, trucks, casinos, sports or entertainment venues or stadiums, and retail locations being sublet under a lease to a master concessionaire, whether currently existing or constructed or established subsequent to the date hereof;
- (iv.) to sell products under the Marks at locations other than a franchised business such as grocery stores or other stores which offer packaged products; and
- (v.) to acquire and operate a business operating one or more food services businesses located or operating anywhere.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the agreement does not prevent the franchisor from operating its own restaurants. Section 1.1 grants the franchisee a non-exclusive right to operate a Buns on Fire restaurant at an approved location and a non-exclusive license to use the Marks. This means that Buns on Fire can license other franchisees.
The franchisor retains the right to establish and operate franchised businesses and use the Marks outside the franchisee's protected territory, as detailed in Section 1.4. This includes the right to operate Buns on Fire restaurants or other venues selling similar goods and services under different trade and service marks, or under the same Marks, through various channels of distribution.
Buns On Fire also reserves the right to operate restaurants at Non-Traditional Sites such as military bases, hotels, airports, and sports venues, regardless of their proximity to a franchisee's location. Additionally, they can sell products under the Marks at locations other than franchised businesses, such as grocery stores. The franchisor can also acquire and operate existing food service businesses anywhere. These stipulations in the franchise agreement allow Buns On Fire to expand its brand presence through various channels without being restricted by individual franchise territories, as long as they are outside the Protected Territory.