What is the Buns On Fire franchisee's required action regarding the executed lease?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
The clauses referred to in Article 2.1 of the attached Franchise Agreement are as follows:
(i.) The premises being leased hereunder shall be used solely for the operation of an "Buns on Fire" restaurant, during the time that the Franchise Agreement is still in effect.
(ii.) Lessor has examined Franchisor's standard design concepts and specifications and consents to Lessee's use of same and of the Marks and such signage as the Franchisor may prescribe for the Franchised Business.
(iii.) Lessee may not assign all or any part of its occupancy rights, or extend the term or renew the lease, without Franchisor's prior written consent.
(iv.) Lessor shall furnish Franchisor a copy of the executed lease, including all attachments thereto and related agreements, if any, within five (5) days after its execution, and no change or amendment to such lease affecting the above terms and conditions shall be effective without Franchisor's prior written approval.
(v.) Notwithstanding anything to the contrary contained in this Lease, it is expressly understood and agreed that if the Franchise Agreement dated the day of , 20 between the Lessee and the Franchisor expires or is terminated for any reason whatsoever, the Lessee's rights hereunder shall, at the option of the Franchisor, be transferred and assigned to it.
Said option may be exercised by the Franchisor giving the Lessor notice in writing within thirty (30) days following the expiration or termination of the said Franchise Agreement, such notice to specify, inter alia, the date of such expiration or termination.
The Lessee acknowledges and agrees that the Lessor may rely upon such notice and shall not be required to inquire into the due execution thereof or the accuracy of the statements set forth therein.
It is further agreed that such notice shall, without further act or formality, operate as an effective assignment of the Lessee's right hereunder to the Franchisor and the assumption by the Franchisor of the covenants herein required to be observed or performed by the Lessee.
The Franchisor shall thereafter have the right to assign or sublet the Premises to such person as it may designate, provided that in such event that this clause be contained therein.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the franchisee is required to furnish the franchisor a copy of the executed lease, including all attachments and related agreements, within five days of execution. Furthermore, any changes or amendments to the lease affecting the terms and conditions are not effective without Buns On Fire's prior written approval.
These stipulations ensure that Buns On Fire maintains control over the location and operation of its franchises. By requiring a copy of the lease, Buns On Fire can verify that the lease terms align with its standards and protect its interests. The franchisor also retains the right to approve any changes to the lease, preventing franchisees from making alterations that could negatively impact the brand or business operations.
Additionally, the lease must include clauses that allow the franchisee to assign the lease to SMYA Ventures LLC (or its designee) without the lessor's consent, and that the lessor may disclose sales information to Buns On Fire upon request. The lease must also stipulate that the lessor will provide Buns On Fire with written notice of any default by the franchisee, giving Buns On Fire the option to cure the default. These provisions enable Buns On Fire to protect its investment and maintain consistent standards across all franchise locations.
These requirements are typical in franchising, as franchisors need to ensure brand consistency and protect their interests in the franchise locations. Prospective Buns On Fire franchisees should carefully review the lease terms and understand their obligations to provide the lease to the franchisor and obtain approval for any changes.