Does the Franchisor of Buns On Fire have the right to operate Buns On Fire restaurants at Non-Traditional Sites?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
(iii.) to operate and granting others the right to operating Buns on Fire restaurants at "Non-Traditional Sites" under any terms and conditions the Franchisor deems appropriate at the sole discretion of the Franchisor, regardless of proximity to the Franchised Business. As used in this Agreement, Non-Traditional Sites shall include, without limitation, military bases, hotels, motels, high schools, and college campuses, airports, subways, train stations, travel plazas, toll roads, beaches, parks and other seasonal facilities, government buildings and establishments, prisons, hospitals, convenience stores, cafeterias, snack bars, trucks, casinos, sports or entertainment venues or stadiums, and retail locations being sublet under a lease to a master concessionaire, whether currently existing or constructed or established subsequent to the date hereof;
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the franchisor retains the right to operate Buns On Fire restaurants at non-traditional sites. This means that Buns On Fire can establish and operate restaurants, or grant others the right to do so, at locations such as military bases, hotels, schools, airports, and entertainment venues, regardless of their proximity to a franchisee's location.
This right allows Buns On Fire to expand its brand presence in diverse locations and capture customers in markets that might not be suitable for traditional restaurants. However, this could also create competition for franchisees if a non-traditional site is located near their protected territory. The terms and conditions for operating at these non-traditional sites are determined at the sole discretion of Buns On Fire.
For a prospective franchisee, this clause highlights the importance of understanding the scope of their protected territory and the potential for competition from franchisor-operated or licensed locations. It is essential to carefully review Exhibit A, which defines the protected territory, and to discuss with Buns On Fire any concerns about potential encroachment from non-traditional sites. Franchisees should also inquire about the criteria Buns On Fire uses to determine the terms and conditions for non-traditional locations, as this could impact their own business operations.