Is a Buns On Fire franchisee required to purchase all items from designated suppliers?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
rchase from Franchisor or its designee any new Products, which may be introduced from time to time by Franchisor and be required to offer same to the consuming public for its consumption and shall offer any method of delivery, such as in-store, and delivery, as Franchisor shall designate in the Confidential Operations Manual.
8.7 Approved Suppliers
(i.) In connection with the operation of the Franchised Business, the Franchisee is required to purchase certain items of equipment, if applicable, and also certain products and food supplies, containers, packaging supplies, paper goods and other product service items for the preparation
and service of the Products from sources designated by the Franchisor. Franchisee's obligations under this shall be satisfied so long as Franchisee equips the Franchised Business and keeps it maintained in accordance with Franchisor's strict specifications and standards for the Franchised Business.
- (ii.) In the event that Franchisee proposes to purchase any brand, type, and/or model of products, supplies, or services which are not then approved by Franchisor, Franchisee will first notify Franchisor and will submit to Franchisor, on Franchisor's request, sufficient written specifications, photographs, drawings, samples, and/or other information for a determination by Franchisor of whether the brand, type, and/or model of products, supplies, or services complies with Franchisor's specifications and standards, which determination will be made and communicated to Franchisee in writing within sixty (60) days after receipt of the necessary samples and information. In the event Franchisor does not respond within sixty (60) days Franchisee's request is deemed denied. Franchisor does not make the criteria for approving suppliers available to franchisees. Franchisor may approve or disapprove a supplier or item in Franchisor's sole discretion. Franchisor may charge the Franchisee a reasonable testing fee and will decide within a reasonable time after receiving the required information whether Franchisee may purchase items from such supplier. Upon Franchisor's approval of your proposed item and/or supplier, Franchisor will permit Franchisee to contract with the alternative supplier.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, franchisees are required to purchase specific items from designated suppliers. These items include equipment (if applicable), products and food supplies, containers, packaging supplies, paper goods, and other product service items necessary for preparing and serving the Buns On Fire products. This requirement ensures that all franchisees maintain the franchisor's standards for consistent quality and uniformity.
The FDD clarifies that Buns On Fire's intention is not to unreasonably limit the sources from which franchisees can procure items. However, to maintain strict standards and specifications, franchisees must purchase certain products, beverages, and other similar items from suppliers designated by Buns On Fire. The franchisor is not obligated to approve any suppliers other than those they designate.
This arrangement allows Buns On Fire to control the quality and consistency of its products across all franchise locations. It also enables the franchisor and its affiliates to receive payments from suppliers based on their dealings with franchisees, using these amounts without restriction. While franchisees must adhere to the designated supplier list for key items, they should also be aware that Buns On Fire expressly disclaims any warranties regarding the condition of the supplies purchased from approved suppliers, directing franchisees to the manufacturer or supplier in case of defects.