Does the Buns On Fire franchise agreement release the franchisee from any obligations, responsibilities, or liabilities during the term of the agreement or any renewals?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
to compete to Franchisee's Territory for all franchises sold in the State of Indiana.
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- Section 24.11 of the Franchise Agreement ("Injunction") will not apply to franchises offered and sold in the State of Indiana.
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- Section 24.10.5 is deleted from the Franchise Agreement.
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- Notwithstanding the terms of Article 15 of the Franchise Agreement ("Indemnification"), Franchisee will not be required to indemnify Franchisor and the other Indemnitees for any liability caused by Franchisee's proper reliance on or use of procedures or materials provided by Franchisor or caused by Franchisor's negligence.
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SMYA VENTURES LLC
MARYLAND ADDENDUM TO FRANCHISE AGREEMENT
Notwithstanding anything to the contrary set forth in the Franchise Disclosure Document or Franchise Agreement, the following provisions shall supersede and apply to all franchises offered and sold under the laws of the State of Maryland.
- No release language set forth in Section 3.2.1(g) of the Franchise Agreement (concerning requirements for renewal) or Section 14.4.1(n) of the Franchise Agreement (concerning requirements for transfer) shall relieve the Franchisor or any other person, directly or indirectly, from liability imposed by the laws concerning franchising of the State of Maryland. Sections 3.2.1(g) and 14.4.1(n) of the Franchise Agreement are each hereby amended to add the following language:
"The release requirement of this Section is not intended to nor shall it act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. The release required under this Section will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law."
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- Any claims arising under the Maryland Franchise Registration and Disclosure Laws must be brought within three (3) years after the grant of the Franchise.
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Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the franchise agreement contains release language that under certain circumstances, could be interpreted as releasing the franchisor or other persons from liabilities. However, addenda for specific states like Maryland and Illinois modify these provisions to protect franchisees' rights under state franchise laws.
In Maryland, the addendum clarifies that release requirements in sections concerning renewal and transfer do not act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law. This means that Buns On Fire franchisees in Maryland retain their rights and protections under Maryland franchise law, regardless of any release language in the standard franchise agreement. Similar protections are afforded to Illinois franchisees.
Specifically, for Illinois franchisees, the Buns On Fire FDD states that any provision purporting to bind a person acquiring a franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act is void. This ensures that Illinois franchisees cannot inadvertently waive their rights under Illinois law through standard franchise agreement clauses. Furthermore, certain sections of the franchise agreement, such as Section 22.1 ("Your Acknowledgments"), are deleted from all Illinois Franchise Agreements, providing additional protection to franchisees in that state.
These state-specific addenda highlight the importance of carefully reviewing the franchise agreement and any state-specific amendments with legal counsel to fully understand the scope of franchisee rights and protections. While the standard Buns On Fire agreement may contain broad release language, these provisions are often modified by state law to ensure franchisees retain their statutory rights and remedies.