What happens if a Buns On Fire franchisee dissolves or liquidates?
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
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
The 2025 Buns On Fire Franchise Disclosure Document outlines several obligations a franchisee must meet upon termination of the franchise agreement, which would include dissolution or liquidation. Upon the effective date of termination, the franchisee must immediately cease using all trademarks owned by or associated with Buns On Fire, including any similar names or marks that associate the franchisee with the Buns On Fire system. If the franchisee's business is incorporated, they must eliminate "Buns on Fire" from their corporate name within 15 days of termination, at their own expense.
Additionally, the franchisee is required to discontinue displaying and using any signs, stationery, letterheads, forms, manuals, printed matter, advertising, and other material containing the Buns On Fire marks or any designations that associate the franchisee with the system. The franchisee must also desist from taking any action indicating or implying that they are an authorized franchisee after termination. Within 15 days of termination, the franchisee must return all manuals, records, files, instructions, recipes, correspondence, and materials related to the franchised business to Buns On Fire, retaining no copies except for their copy of the Franchise Agreement and any documents needed for legal compliance.
Furthermore, the franchisee is obligated to vacate and surrender the franchised business premises according to the terms of the lease or conditional lease assignment. They must also cease using any websites and telephone numbers used while conducting business as a Buns On Fire franchise and take necessary steps to remove their listing from directories and websites. The franchisee must maintain all financial records and reports for three years after termination and allow Buns On Fire to inspect these records. They must also transfer all franchised business data from any server or computer used in connection with the business to Buns On Fire within 15 days of termination.
In the event of a relocation of the Franchised Business, Franchisee shall promptly remove from the first Franchised Business premises, and discontinue using for any purposes, any and all signs, fixtures, furniture, posters, furnishings, equipment, menus, advertising materials, stationery supplies, forms and other articles which display any of the Marks or any distinctive features or designs associated with Buns on Fire. Furthermore, Franchisee shall, at Franchisee's expense, immediately make such modifications or alterations as may be necessary to distinguish the first Franchised Business so clearly from its former appearance and from other Buns on Fire restaurants and to prevent any possibility of confusion therewith by the public (including, without limitation, removal of all distinctive physical and structural features identifying Buns on Fire and removal of all distinctive signs and emblems).