What is the Buns On Fire franchisee required to do when making an offer to sell the franchised business?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the requirements of this Article, Franchisee must promptly ("promptly" being herein defined as within fifteen (15) days of receipt of an offer to buy) give Franchisor additional written notice whenever Franchisee has received a bona fide offer from a third party to buy Franchisee's business franchised hereunder. Franchisee must also give Franchisor written notice simultaneously with any offer to sell the Franchised Business made by, for, or on behalf of Franchisee. The purpose of this Subsection is to enable Franchisor to comply with any applicable state or federal franchise disclosure law or rules. Franchisee agrees to indemnify and hold Franchisor harmless for Franchisee's failure to comply with this Subsection.
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 must provide written notice to Buns On Fire simultaneously with any offer to sell the franchised business. The FDD specifies that the franchisee must also promptly (defined as within fifteen (15) days of receipt of an offer to buy) give Buns On Fire additional written notice whenever the franchisee has received a bona fide offer from a third party to buy the franchisee's business.
This notification requirement is included in the Franchise Agreement to enable Buns On Fire to comply with any applicable state or federal franchise disclosure laws or rules. This is a fairly standard clause in franchise agreements, allowing the franchisor to stay informed about potential changes in ownership and ensure compliance with legal requirements.
The franchisee is responsible for indemnifying and holding Buns On Fire harmless for any failure to comply with this notification requirement. This means that if the franchisee fails to provide the required notice and Buns On Fire incurs any costs or liabilities as a result, the franchisee will be responsible for covering those costs. This underscores the importance of adhering to the notification requirements outlined in the Franchise Agreement when considering a sale of the Buns On Fire franchise.