Is the Buns On Fire franchisee's right to renew the franchise agreement unconditional?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
chisee to surrender any rights given to him/her under the franchise, that provision may not be enforceable.
ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF WASHINGTON
In recognition of the requirements of the Washington Franchise Investment Protection Act, Wash. Rev. Code §§ 19.100.180, the Franchise Disclosure Document for Buns on Fire, in connection with the offer and sale of franchises for use in the State of Washington shall be amended to include the following:
- Item 17, "Renewal, Termination, Transfer and Dispute Resolution," shall be amended by the addition of the following paragraphs at the conclusion of the Item:
The state of Washington has a statute, RCW 19.100.180, which may supersede the license agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the license agreement in your relationship with the franchisor including the areas of termination and renewal of your license.
In any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration, or as determined by the arbitrator.
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
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- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- Each provision of this addendum to the Disclosure Document shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Washington Franchise Investment Protection Act, Wash. Rev. Code §§ 19.100.180, are met independently without reference to this addendum to the Disclosure Document.
EXHIBIT B LIST OF STATE ADMINISTRATORS
Listed here are the names, addresses and telephone numbers of the state agencies having responsibility for franchising disclosure/registration laws and for service of process. We may not yet be registered to sell franchises in any or all of these states.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Buns on Fire franchise agreement in Washington state is subject to certain statutory regulations regarding renewal and termination. Specifically, the Washington Franchise Investment Protection Act (RCW 19.100.180) and relevant court decisions may supersede the terms outlined in the franchise agreement, potentially affecting the franchisee's rights concerning renewal and termination. This means that the standard renewal terms in the Buns on Fire franchise agreement might not be the final authority in Washington, as state law could provide additional or different protections for the franchisee.
Additionally, the FDD includes addenda for franchisees in Minnesota and Illinois, which modify certain aspects of the standard franchise agreement to comply with those states' franchise laws. For example, in Minnesota, Buns on Fire must comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5, providing specific notice periods for termination (90 days with 60 days to cure) and non-renewal (180 days), and also preventing unreasonable withholding of consent for franchise transfers. Illinois also has specific regulations, such as voiding any provision that designates jurisdiction and venue outside of Illinois, although arbitration outside the state is permitted. These state-specific addenda highlight that the rights and obligations of a Buns on Fire franchisee can vary significantly depending on the state in which they operate.
For prospective Buns on Fire franchisees, especially those in Washington, Minnesota, and Illinois, it is crucial to understand these state-specific regulations and how they modify the standard franchise agreement. Franchisees should consult with an attorney to fully understand their rights and obligations under both the franchise agreement and the applicable state laws. This is particularly important concerning renewal, termination, and transfer rights, as state laws may provide additional protections or impose different requirements than those outlined in the standard Buns on Fire franchise agreement. Furthermore, franchisees should be aware that waivers of rights under state franchise laws are often unenforceable, ensuring that franchisees retain the protections afforded to them by law.