What are a Buns On Fire franchisee's obligations upon termination or non-renewal of the franchise agreement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Article in the Franchise Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | IV | 10 years. |
| b. Renewal or extension | IV | One additional term of 10 years. You have been in substantial compliance with agreement. You pay the renewal fee. You may have to remodel your location, at your expense. |
| c. Requirement for franchisee to renew or extend | IV | You may be asked to sign a contract with materially different terms and conditions than your original contract, pay the renewal fee, comply with any new training requirements and serve notice of intention to renew not less than twelve (12) months nor more than eighteen (18) months prior to the expiration of the agreement. You may be required to sign a general release in favor of us. |
| d. Termination by franchisee | None. | The Franchise Agreement does not provide for this. But you may seek to terminate on any grounds available to you at law. |
| e. Termination by franchisor | Not Applicable | Not Applicable |
| without cause | ||
| f. Termination by franchisor with | XVII | We can terminate only if you commit any one |
| cause | of several listed violations | |
| g. "Cause" defined—curable defaults | XVII | 30 days for operations defaults, 30 days for monetary defaults, 24 hours for health code violations, as set forth in the Franchise Agreement |
| h. "Cause" defined—non- curable defaults | XVII | Conviction of a felony, abandonment, unapproved transfers, bankruptcy, assignment for benefit of creditors, repeated violations; termination for cause of another contract between us and you. |
| i. Franchisee's obligations on termination/non-renewal | XVIII | Pay outstanding amounts, de-identification, return of confidential information and other materials provided by us; pay liquidated damages. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 41–43)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, Item 17 outlines the franchisee's obligations upon termination or non-renewal of the franchise agreement. Specifically, the franchisee must fulfill several requirements.
First, the franchisee is obligated to pay all outstanding amounts owed to Buns On Fire. Second, the franchisee must de-identify the business, which involves removing all Buns On Fire branding and signage from the location to ensure it no longer appears to be an active franchise. Third, the franchisee is required to return all confidential information and other materials provided by Buns On Fire during the franchise term.
Finally, the franchisee must pay liquidated damages, the specific amount of which would likely be detailed elsewhere in the Franchise Agreement. These obligations ensure that upon termination or non-renewal, the franchisee ceases all operations related to the Buns On Fire brand and compensates Buns On Fire for any losses incurred.