What happens if a Buns On Fire franchisee dissolves their business?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
18.3 Discontinue Use of Marks; Change of Corporate Name
Upon the Effective Date of Termination, Franchisee shall cease the use of all Marks owned by or associated with Franchisor and all similar names and marks, or any other designation or mark associating Franchisee with the System. If Franchisee is a corporation, limited liability company, or partnership and, notwithstanding the prohibition of utilizing the Marks or the "Buns on Fire" name in its corporate or partnership name, has used the Marks or the "Buns on Fire name or any names, marks or designations that associate Franchisee with Franchisor in its corporate or partnership name, Franchisee shall, within fifteen (15) days of the Effective Date of Termination, take all necessary steps to eliminate "Buns on Fire from its corporate or partnership name, at the Franchisee's own cost and expense.
18.4 Signage
Upon the Effective Date of Termination, Franchisee shall discontinue displaying and using any and all signs, stationery, letterheads, forms, manuals, printed matter, advertising, and other material containing the Marks, "Buns on Fire" or any other names, marks, or designations that associate Franchisee with the System.
18.5 No Further Acts
After the Effective Date of Termination, Franchisee shall desist from taking any action indicating or implying that the Franchisee is an authorized franchisee.
18.6 Financial Records and Reports
- (i.) Franchisee shall maintain all financial records and reports required pursuant to this Agreement or the Confidential Operations Manual for a period of not less than three (3) years after the Effective Date of Termination. Franchisee shall permit Franchisor to make final inspection of Franchisee's financial records, books, tax returns, and other accounting records within three (3) years of the Effective Date of Termination.
- (ii.) Within fifteen (15) days of termination, Franchisee shall transfer or make available to Franchisor all Franchised Business data (including but not limited to sales, labor, cost of goods, marketing, and all other business data) from any server or computer used in connection with the Franchised Business.
18.7 Vacate Premises
Upon the Effective Date of Termination, Franchisee shall, pursuant to the lease or conditional lease assignment and upon demand of Franchisor, vacate and surrender the Franchised Business premises in accordance with the terms and conditions under the terms of the lease, and/or conditional lease assignment.
18.8 Websites, Telephone Numbers, and Listings
Upon the Effective Date of Termination, Franchisee shall immediately cease to use of any websites, telephone numbers used by Franchisee while conducting business as a Buns on Fire franchise and shall
promptly execute any and all such documents or take steps necessary to remove Franchisee's listing as a Buns on Fire franchise from the "Yellow Pages", all other telephone directories, all other trade or other business directories, and any URL or websites.
18.9 Return of Confidential Operations Manual, Etc.
Within fifteen (15) days from the Effective Date of Termination of this Agreement, Franchisee shall immediately turn over and return to Franchisor any and all manuals, including the Confidential Operations Manual, records, files, instructions, recipes, correspondence, any and all materials relating to the operation of the Franchised Business in Franchisee's possession, and all copies of such written materials, including electronic copies (all of which are acknowledged to be Franchisor's property), and shall retain no copy or record of any of the foregoing, except only Franchisee's copy of this Agreement and of any correspondence between the parties, and any other documents which the Franchisee reasonably needs for compliance with any provision of law and the records described in Section 18.6 hereof.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, upon the termination of the franchise agreement, the franchisee must cease using all Marks associated with Buns On Fire. If the franchisee's business name includes "Buns on Fire", they must take the necessary steps to eliminate "Buns on Fire" from their business name within 15 days of the termination date.
The franchisee must also discontinue displaying any materials containing Buns On Fire's marks and must not take any further action that implies they are an authorized franchisee. The franchisee is obligated to maintain financial records for at least three years after termination and allow Buns On Fire to inspect these records. Additionally, within 15 days of termination, the franchisee must provide all franchised business data from their servers or computers to Buns On Fire.
The franchisee is required to vacate the franchised business premises and surrender it according to the lease terms. They must also stop using any websites or telephone numbers associated with the Buns On Fire franchise and remove their listing from directories and websites. All manuals and materials related to the business operation must be returned to Buns On Fire within 15 days of termination. These stipulations ensure that the franchisee fully disassociates from the Buns On Fire brand and protects the franchisor's proprietary information and brand identity.