Does the Buns On Fire franchise agreement require a disclosure acknowledgement statement from the franchisee?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
SMYA VENTURES LLC
EXHIBIT "G" FRANCHISEE DISCLOSURE ACKNOWLEDGMENT STATEMENT
SMYA Ventures LLC (the "Franchisor") and you are preparing to enter into a Franchise Agreement for the establishment and operation of a Buns on Fire restaurant (the "Franchised Business"). The purpose of this Questionnaire is to make sure you have received the information necessary and have had the opportunity to review and consider such information.
For franchisees and franchises that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington or Wisconsin, this questionnaire is not intended and does not constitute waiver of any claims under any applicable state franchise law, including fraud in the inducement; or a disclaimer of any reliance on any statement made by any person acting on behalf of the Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 48–49)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, franchisees are generally required to sign a disclosure acknowledgement statement. Exhibit G of the FDD is a sample "Franchisee Disclosure Acknowledgment Statement". However, the FDD also states that for franchisees in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington or Wisconsin, this questionnaire does not constitute a waiver of any claims under state franchise law.
Furthermore, the Illinois Addendum to the Franchise Agreement states that Section 22.1, titled "Your Acknowledgments," is deleted from all Illinois Franchise Agreements. This suggests that franchisees in Illinois are not required to sign the standard disclosure acknowledgement.
Additionally, the FDD states that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements made by Buns On Fire. This provision is intended to protect franchisees' rights, ensuring that they cannot inadvertently forfeit legal protections through such acknowledgements. This applies to franchisees in Illinois and Rhode Island.