Does the Buns On Fire franchisor have the right to inspect the construction of the franchised business?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
operate a business operating one or more food services businesses located or operating anywhere.
ARTICLE II DEVELOPMENT AND OPENING OF THE FRANCHISED BUSINESS
2.1 Franchised Business Premises
- (i.) Franchisee shall operate the Franchised Business from a location in the Protected Territory. Franchisee shall acquire or lease within ninety (90) days from the date of execution of this Agreement, an approved premises for the Franchised Business. The Franchisor shall have the right in its sole discretion, to require:
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- Franchisee to execute a Site Addendum Agreement in the form attached hereto;
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- Franchisee to conditionally assign such lease to the Franchisor (with the consent of the lessor, if required) by conditional lease assignment provisions in form annexed to Franchise Agreement as Exhibit "C" in order to secure performance of any and all of Franchisee's liabilities and obligations to the Franchisor; or
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3. That such lease contains substantially the following provisions:
- a. "Anything contained in this lease to the contrary notwithstanding, Lessor agrees that without its consent, this lease and the right, title and interest of the Lessee hereunder may be assigned by the Lessee to SMYA Ventures LLC, an Illinois limited liability company or its designee."
- b. "Lessee hereby agrees that Lessor may, upon the written request of Buns on Fire, disclose to Buns on Fire all reports, information or data in Lessor's possession with respect to sales made in, upon, or from the leased premises."
- c. "Lessor shall give written notice to Buns on Fire (concurrently with the giving of such notice to Lessee) of any default by Lessee under the lease and Buns on Fire shall have the right, in its sole discretion, to cure any such default.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Buns On Fire discusses the franchisor's rights regarding the franchisee's business premises. While it doesn't explicitly state a right to inspect the construction of the franchised business, it does state that the franchisor retains rights related to the approval of the location and lease terms.
Specifically, Buns On Fire requires the franchisee to operate from an approved location within the protected territory and acquire or lease the premises within 90 days of signing the agreement. The franchisor has the right to require a Site Addendum Agreement or a conditional assignment of the lease to secure the franchisee's obligations. Additionally, the lease must contain provisions allowing assignment to SMYA Ventures LLC (or its designee) and allowing the lessor to disclose sales information to Buns On Fire. The lessor must also notify Buns On Fire of any lease defaults and allow Buns On Fire the option to cure such defaults.
Furthermore, the lease agreement must acknowledge that the premises will be used solely for a Buns On Fire restaurant and that the lessor has examined and approved the franchisor's design concepts and specifications. The franchisee cannot assign occupancy rights or extend/renew the lease without Buns On Fire's written consent, and Buns On Fire must receive a copy of the executed lease. These stipulations suggest that Buns On Fire maintains significant control over the physical setup and ongoing operation of the franchised location, which could imply some level of oversight during the construction or build-out phase to ensure compliance with their standards, though this is not explicitly stated.