What happens if a Buns On Fire franchisee breaches a provision of the Franchise Agreement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
The third and fourth sentences of Section 24.11 of the Franchise Agreement is amended to read as follows:
"You therefore agree that if you engage in this non-compliance, or unauthorized and/or improper use of The Buns on Fire System or Proprietary Marks, during or after the period of this Agreement, we will be entitled to seek both temporary and permanent injunctive relief against you from any court of competent jurisdiction, in addition to all other remedies which we may have at law. You consent to the seeking of these temporary and permanent injunctions."
"The prevailing party will be entitled to recover from the losing party reasonable attorneys' fees, experts' fees, court costs and all other expenses of litigation, if the prevailing party prevails in any
action instituted against the losing party to secure or protect its rights under this Agreement, or to enforce the terms of this Agreement, or in any action commenced or joined in by the losing party against the prevailing party."
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 39–40)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, if a franchisee engages in non-compliance or unauthorized/improper use of the Buns on Fire system or proprietary marks, whether during or after the agreement period, Buns on Fire is entitled to seek both temporary and permanent injunctive relief from a competent court. This is in addition to any other legal remedies available to them. The franchisee consents to the seeking of these injunctions.
In practical terms, this means that if a Buns On Fire franchisee violates the terms of the franchise agreement, particularly concerning the use of the Buns On Fire system or trademarks, the franchisor can take immediate legal action to stop the franchisee's actions. This can include obtaining a court order to prevent the franchisee from continuing the non-compliant behavior. This measure aims to protect the brand and operational standards of Buns On Fire.
This clause highlights the importance of adhering to the franchise agreement and maintaining the integrity of the Buns On Fire brand. Franchisees should be aware that any deviation from the established system or misuse of trademarks can result in swift legal action, including injunctions, which can significantly impact their business operations. It is also important to note that the prevailing party in any action instituted against the losing party to secure or protect its rights under this Agreement, or to enforce the terms of this Agreement, will be entitled to recover from the losing party reasonable attorneys' fees, experts' fees, court costs and all other expenses of litigation.