Must a Buns On Fire franchisee sign a Conditional Assignment of Lease?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
You must operate the Franchise Business from the approved location within the Territory, which should be at least 1,200 square feet in size and include sufficient space for among other things, an administrative desk space, and access to parking facilities. You must obtain our approval of the site you select for location of your Franchise Business. When you have found a site which you believe to be suitable for your Franchise Business, you must submit a completed site approval package to us (the "Site Approval Package") and other materials which we may reasonably require. We will have thirty (30) days to approve or disapprove of the site that you propose.
Our site selection and/or acceptance is based on factors such as residential population, traffic counts and patterns, competing establishments, median income levels, availability of parking, rental and lease terms, physical configuration of the site and growth trends in the area. We are not obligated to approve any site selected, but we will not unreasonably withhold our approval of a site that meets the minimum criteria for your business premises. You must sign a Conditional Assignment of Lease in a form designated by us. If you do not find a suitable site within six (6) months, we can terminate the Franchise Agreement and keep the Initial Franchise Fee. Our approval of your site is not a guaranty or warranty that the Franchise Business will be successful.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 25–33)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, a franchisee must sign a Conditional Assignment of Lease in a form designated by Buns On Fire. This is part of the site selection process, where the franchisee must operate the Franchise Business from an approved location within the Territory. The location should be at least 1,200 square feet and include sufficient space for an administrative desk and access to parking.
The franchisee is responsible for finding a suitable site and submitting a completed Site Approval Package to Buns On Fire for approval. Buns On Fire has 30 days to approve or disapprove the proposed site based on factors such as residential population, traffic patterns, competing establishments, income levels, parking availability, lease terms, and growth trends.
While Buns On Fire is not obligated to approve every site, they will not unreasonably withhold approval if the site meets the minimum criteria. However, if a franchisee fails to find a suitable site within six months, Buns On Fire has the right to terminate the Franchise Agreement and retain the Initial Franchise Fee. It is important to note that Buns On Fire's approval of a site does not guarantee the success of the Franchise Business.