What is the franchisee required to do regarding the Internet Companies' acceptance of Buns On Fire's termination statement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby directs the Internet Companies to accept, as conclusive proof of Termination of the Franchise Agreement, Franchisor's written statement, signed by an officer or agent of Franchisor, that the Franchise Agreement has terminated.
- 2.5 Cessation of Obligations.
After the Internet Companies have duly transferred all Franchisee's Interest in such Internet Web Sites and Listings to Franchisor, as between Franchisee and Franchisor, Franchisee will have no further interest in, or obligations under, such Internet Web Sites and Listings.
Notwithstanding the foregoing, Franchisee will remain liable to each and all of the Internet Companies for the sums Franchisee is obligated to pay such Internet Companies for obligations Franchisee incurred before the date Franchisor duly accepted the transfer of such Interest, or for any other obligations not subject to the Franchise Agreement or this Internet Listing Agreement.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire FDD, the franchisee directs the Internet Companies to accept Buns On Fire's written statement as conclusive proof that the Franchise Agreement has been terminated. This statement must be signed by an officer or agent of Buns On Fire.
Once the Internet Companies transfer all of the franchisee's interest in the Internet Web Sites and Listings to Buns On Fire, the franchisee will no longer have any interest in, or obligations under, such Internet Web Sites and Listings, as between the franchisee and Buns On Fire. However, the franchisee remains liable to the Internet Companies for any sums they are obligated to pay for obligations incurred before Buns On Fire accepted the transfer of interest. The franchisee is also liable for any other obligations not subject to the Franchise Agreement or the Internet Listing Agreement.
This arrangement ensures that Buns On Fire can manage its brand presence online after a franchise agreement terminates, while also protecting the rights and interests of both the franchisee and the Internet Companies. The franchisee is responsible for settling any outstanding debts or obligations to the Internet Companies, even after the transfer of interest to Buns On Fire.