Can a Buns On Fire franchisee communicate with anyone other than Buns On Fire and its counsel regarding copyright infringement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
You must immediately notify us of any actual or apparent infringement of or challenge to any of the copyrighted works or claim by any person of any rights in the copyrighted works and may not communicate with any person other than us and our counsel in connection with any infringement, challenge or claim. We shall have the sole discretion to take any action as we deem appropriate and the right to control exclusively any settlement, litigation, arbitration or administrative proceeding arising out of any alleged infringement, challenge or claim or otherwise relating to the copyrighted works.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 37–39)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, a franchisee's right to use copyrighted works is derived solely from the Franchise Agreement. This right is limited to using the copyrighted materials in compliance with the agreement and all prescribed standards, specifications, and operating procedures. Franchisees must ensure that all copyrighted works display the appropriate copyright notice, as specified in the Operations Manual, indicating that Buns On Fire owns the copyright. The Franchise Agreement does not grant franchisees any interest in the copyrighted works beyond the right to operate the franchise in compliance with the agreement.
The FDD states that franchisees must immediately notify Buns On Fire of any actual or apparent infringement or challenge to the copyrighted works, or any claim by any person of rights in the copyrighted works. Critically, franchisees are prohibited from communicating with anyone other than Buns On Fire and its counsel regarding any infringement, challenge, or claim related to the copyrighted works. Buns On Fire retains the sole discretion to take any action it deems appropriate and has the exclusive right to control any settlement, litigation, arbitration, or administrative proceeding arising from alleged infringement, challenge, or claim relating to the copyrighted works.
This provision is fairly standard in franchising, as franchisors typically want to maintain tight control over their intellectual property and legal matters. By centralizing communication and decision-making regarding copyright issues, Buns On Fire aims to ensure consistent handling of such matters and protect its brand and system standards. This approach also shields franchisees from potential legal risks and liabilities associated with unauthorized communication or actions regarding copyright infringement. Prospective franchisees should understand that they must rely on Buns On Fire to handle all copyright-related issues and must not take independent action without the franchisor's consent.