Does the Buns On Fire Guaranty extend to agreements beyond the Franchise Agreement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
| EXHIBIT "L" ELECTRONIC TRANSFER AUTHORIZATION1 | | EXHIBIT "M" POWER OF ATTORNEY1 | | EXHIBIT "N" AMERICANS WITH DISABILITIES ACT ("ADA") CERTIFICATION1 | | EXHIBIT "O" GENERAL RELEASE | | |
EXHIBITS:
Exhibit A Location Addendum
Exhibit B. Guaranty (to Franchisor)
Exhibit C. Conditional Lease Assignment Provisions
Exhibit D. Site Location Addendum
Exhibit E. Internet, Website, and Telephone Listing Agreement
Exhibit F. State Specific Addendum
Exhibit G. Franchisee Disclosure Acknowledgement Statement
Exhibit H. Questionnaire
Exhibit I. Training Completion Agreement and Release
Exhibit J. [Reserved].
Exhibit K. Guaranty (Exclusive Supplier)
Exhibit L. Electronic Transfer Authorization
Exhibit M. Power of Attorney
Exhibit N. ADA Certificate
BUNS ON FIRE FRANCHISE AGREEMENT
| THIS FRANCHISE AGREEMENT, (the "Agreement"), entered into as of this day of []
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Exhibit B is a Guaranty to the Franchisor, and Exhibit K is a Guaranty to an Exclusive Supplier. Item 23 includes the statement that "The Franchise Agreement and any documents signed in connection with the franchise are supplemented with the following language..." This implies that the Guaranty could extend to documents beyond just the Franchise Agreement.
Specifically, the FDD mentions a Conditional Lease Assignment (Exhibit C) and a Site Addendum Agreement. The franchisor may require the franchisee to conditionally assign the lease to Buns On Fire to secure the franchisee's obligations to the franchisor. The lease agreement may also contain provisions where the landlord agrees to notify Buns On Fire of any defaults by the franchisee and allow Buns On Fire to cure the default. These clauses suggest that the franchisee's obligations under the lease could be tied to the Franchise Agreement.
Furthermore, the FDD states that no statement signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements by the franchisor. This provision supersedes any other term in any document related to the franchise. This suggests that while the Guaranty is linked to the Franchise Agreement, it is also designed to protect the franchisee's rights and ensure compliance with franchise laws, even in supplemental documents.
Therefore, while the primary Guaranty (Exhibit B) directly supports the Franchise Agreement, the broader context of Item 23 and the inclusion of other exhibits like the Conditional Lease Assignment (Exhibit C) and the statement regarding supplemental language suggest that the obligations and protections could extend to other agreements signed in connection with the franchise.