Is the Buns On Fire franchisee's site selection subject to approval by the Franchisor?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless an approved location was selected by Franchisee at the time this Agreement is executed, Franchisee shall select the location of the Franchised Business, subject to the Franchisor's approval, within ninety (90) days after the effective date of this Agreement.
Prior to the acquisition by lease or purchase of any proposed location for the franchised business, Franchisee shall submit to Franchisor, in the form specified by Franchisor, a description of the proposed location, a comprehensive market feasibility study prepared by a qualified third-party consultant approved by Franchisor for the proposed location, and such other information or materials as Franchisor may
reasonably require, together with a letter of intent or other evidence satisfactory to Franchisor which confirms Franchisee's favorable prospects for obtaining the proposed location. Recognizing that time is of the essence, Franchisee agrees that it must submit such information and material for the proposed location to Franchisor for its approval no later than ninety (90) days after the execution of the Franchise Agreement. Franchisor shall have fifteen (15) days after receipt of such information and materials from Franchisee to approve or disapprove, at its sole discretion, the proposed location as the location for the franchised business. The proposed location shall not be deemed approved unless written notice of approval is given to Franchisee by Franchisor.
In connection with Franchisee's selection of a site for the franchised business, Franchisor shall furnish to Franchisee the following:
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- Site selection counseling and assistance as Franchisor may deem advisable for a site.
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- Such on-site evaluation as Franchisor may deem advisable in response to Franchisee's request for site approval; provided, however, that Franchisor shall not provide on-site evaluation for any proposed site prior to the receipt of a market feasibility study for such site prepared by Franchisee pursuant to Paragraph C. hereof. If on-site evaluation is deemed necessary and appropriate by Franchisor (on its own initiative or at Franchisee's request), Franchisee shall reimburse Franchisor for all reasonable expenses incurred by Franchisor in connection with such on-site evaluation, including, without limitation, the cost of travel, lodging and meals, following Franchisee's approval in advance of same.
The lease for the premises of the franchised business shall be submitted to Franchisor for its written approval prior to execution by Franchisee and the Lessor, and shall contain the following terms and conditions:
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, the franchisee's site selection is subject to the franchisor's approval. The franchisee is responsible for selecting a location for the Franchised Business, but this selection must be approved by Buns On Fire. This approval process must occur within ninety (90) days after the franchise agreement's effective date, unless an approved location was already selected when the agreement was executed.
Buns On Fire provides site selection counseling and assistance, including on-site evaluations if deemed necessary. However, on-site evaluations are only conducted after the franchisee submits a market feasibility study from a qualified third-party consultant. The franchisee is responsible for reimbursing Buns On Fire for expenses related to on-site evaluations, such as travel, lodging, and meals, provided the franchisee approves these expenses in advance.
To gain site approval, the franchisee must submit a description of the proposed location, a comprehensive market feasibility study, and other required information to Buns On Fire. Buns On Fire then has fifteen (15) days to approve or disapprove the proposed location. Written approval from Buns On Fire is required for the location to be considered approved. Additionally, the lease for the premises must be submitted to Buns On Fire for written approval before it is executed, and it must contain specific terms and conditions outlined by Buns On Fire.
These stipulations ensure that Buns On Fire maintains control over the locations of its franchises, which helps to protect the brand's image and consistency. For a prospective franchisee, this means they will need to work closely with Buns On Fire during the site selection process and be prepared to invest in a market feasibility study and potentially cover the franchisor's on-site evaluation expenses. The franchisee must also ensure that the lease agreement meets Buns On Fire's requirements.