Can a Buns On Fire franchisee assign their agreement without franchisor consent?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
The clauses referred to in Article 2.1 of the attached Franchise Agreement are as follows:
(i.) The premises being leased hereunder shall be used solely for the operation of an "Buns on Fire" restaurant, during the time that the Franchise Agreement is still in effect.
(ii.) Lessor has examined Franchisor's standard design concepts and specifications and consents to Lessee's use of same and of the Marks and such signage as the Franchisor may prescribe for the Franchised Business.
(iii.) Lessee may not assign all or any part of its occupancy rights, or extend the term or renew the lease, without Franchisor's prior written consent.
(iv.) Lessor shall furnish Franchisor a copy of the executed lease, including all attachments thereto and related agreements, if any, within five (5) days after its execution, and no change or amendment to such lease affecting the above terms and conditions shall be effective without Franchisor's prior written approval.
(v.) Notwithstanding anything to the contrary contained in this Lease, it is expressly understood and agreed that if the Franchise Agreement dated the day of , 20 between the Lessee and the Franchisor expires or is terminated for any reason whatsoever, the Lessee's rights hereunder shall, at the option of the Franchisor, be transferred and assigned to it.
Said option may be exercised by the Franchisor giving the Lessor notice in writing within thirty (30) days following the expiration or termination of the said Franchise Agreement, such notice to specify, inter alia, the date of such expiration or termination.
The Lessee acknowledges and agrees that the Lessor may rely upon such notice and shall not be required to inquire into the due execution thereof or the accuracy of the statements set forth therein.
It is further agreed that such notice shall, without further act or formality, operate as an effective assignment of the Lessee's right hereunder to the Franchisor and the assumption by the Franchisor of the covenants herein required to be observed or performed by the Lessee.
The Franchisor shall thereafter have the right to assign or sublet the Premises to such person as it may designate, provided that in such event that this clause be contained therein.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, a franchisee needs prior written consent from Buns On Fire to assign their occupancy rights. Specifically, regarding the franchised business premises, the lease agreement must contain a clause stating that the franchisee (Lessee) cannot assign any occupancy rights without the franchisor's (Buns On Fire's) prior written consent. This requirement is designed to ensure that Buns On Fire maintains control over the locations where its restaurants operate.
Furthermore, if Buns On Fire's Franchise Agreement expires or is terminated, Buns On Fire has the option to have the lease rights transferred and assigned to them. To exercise this option, Buns On Fire must provide written notice to the lessor within thirty days of the expiration or termination of the Franchise Agreement. Following this, Buns On Fire has the right to assign or sublet the premises to someone else, provided that the new agreement contains a similar clause.
These stipulations protect Buns On Fire's interests by ensuring they have control over the location of the franchise and the ability to maintain operations or reassign the location as needed. A franchisee should understand that they cannot independently transfer their lease or occupancy rights without Buns On Fire's explicit approval, which is a common practice in franchising to maintain brand consistency and operational standards.