Will a Buns On Fire franchisee receive an exclusive territory?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
regardless of whether the Gift Card was issued by you or another franchisee.
ITEM 12: TERRITORY
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. The Franchise Agreement does not grant you any territorial rights beyond whatever geographic area identified in an exhibit to the Franchise Agreement. There will, however, be protected geographical territory ("Protected Territory"). The Protected Territory, as designated in Exhibit A to the Franchise Agreement, will be an area up to five (5) miles surrounding the restaurant determined by shortest driving distance using Google Maps or a similar mapping program. Except for Non-Traditional Sites as defined below and in Article 1.4 of the Franchise Agreement, Franchisor agrees not to establish another Franchised Business within the Franchisee's Protected Territory. The Protected Territory will be a substantially smaller area around the Franchise Business if it is located in an urban or highly populated setting. For locations in urban or highly populated areas the Protected Territory may be an area of only several blocks around the location approved for the Franchise Business, and for locations in suburban areas the Territory may be up to a two-mile area surrounding the restaurant, also determined by shortest driving distance using Google Maps or a similar mapping program. In all cases the Protected Territory will be set forth in the Franchise Agreement. During the term of the Franchise Agreement we will not, without your consent, establish or franchise another to establish a franchise within your Protected Territory under the Franchise Agreement except for the right to operate and to grant others the right to operate restaurants at "Non-Traditional Sites" (as defined in the Franchise Agreement) under any terms and conditions the Franchisor deems appropriate, regardless of proximity to the Franchise Business as provided in the Franchise Agreement. The designation of your Protected Territory does not mean that other Franchised Business may not solicit, market or advertise to customers within your Protected Territory. It solely means the Franchisor agrees not to establish Franchised Business within the Protected Territory. The relocation of any Franchise Business will be subject to our prior written approval, which may be withheld on whatever basis we determine is in our best interests. If we approve relocation of the Franchise Business, its new location must not be in the Protected Territory of another Franchised Business.
The Protected Territory granted to you is not dependent upon the achievement of a certain sales volume, market penetration or other contingency. There are no circumstances under which the protected area granted to you may be altered before the expiration or termination of the Franchise Agreement, without our mutual consent.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, franchisees do not receive an exclusive territory. However, Buns On Fire does offer a "Protected Territory," the size of which depends on the location of the franchise. For locations that are not considered urban or highly populated, the protected territory will be an area up to five miles surrounding the restaurant, as determined by Google Maps or a similar mapping program. For locations in urban or highly populated areas, the protected territory may only be several blocks around the location. For suburban areas, the territory may be up to a two-mile area surrounding the restaurant, also determined by shortest driving distance using Google Maps or a similar mapping program. The specific details of the Protected Territory will be outlined in the Franchise Agreement.
Buns On Fire will not establish another franchised business within the franchisee's Protected Territory, with the exception of Non-Traditional Sites. The designation of a Protected Territory does not prevent other franchised businesses from marketing or advertising to customers within that territory; it only restricts Buns On Fire from establishing another franchised business there. Additionally, Buns On Fire retains the right to sell products under its Proprietary Marks both within and outside the Protected Territory through various alternative distribution channels, such as the Internet, catalog sales, telemarketing, retail stores, grocery stores, and other direct marketing sales. Franchisees are prohibited from using these alternative distribution channels to make sales either inside or outside their Protected Territory, and they may face competition from these channels within their territory.
Prospective franchisees should be aware that Buns On Fire retains significant rights outside the Protected Territory, including the right to operate or franchise other Buns On Fire locations, even in close proximity to an existing franchise. Buns On Fire also has the right to operate restaurants at Non-Traditional Sites, regardless of their proximity to a franchisee's location. Furthermore, Buns On Fire reserves the right to sell its products through alternative channels of distribution, potentially creating competition for franchisees within their own Protected Territories. Franchisees also cannot engage in promotional activities or sell products through the internet or other electronic media outside of their protected territory.