factual

Can Buns On Fire hold the franchisee liable for an employee's failure to follow the Buns On Fire system?

Buns_On_Fire Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee agrees to indemnify and hold Franchisor harmless for Franchisee's failure to comply with this Subsection.

13.2 Franchisee Has Full Responsibility

Franchisee recognizes that Franchisor has entered into this Agreement in reliance upon and in recognition of the fact that Franchisee will have full responsibility for the management and operation of the business and that the amount of profit or loss resulting from the operation of the business will be directly and solely attributable to the performance of Franchisee.

Source: Item 23 — RECEIPTS (FDD pages 49–200)

What This Means (2025 FDD)

Based on the 2025 Franchise Disclosure Document, Buns On Fire emphasizes the franchisee's responsibility for the business's operation. Specifically, the FDD states that Buns On Fire recognizes that the franchisee has full responsibility for the management and operation of the business. The amount of profit or loss resulting from the operation of the business will be directly and solely attributable to the performance of Franchisee.

This indicates that Buns On Fire holds the franchisee accountable for the overall performance and adherence to the system. While it doesn't explicitly state that the franchisee is liable for each individual employee's failure, the franchisee's overall responsibility suggests they are accountable for ensuring their employees follow the Buns On Fire system.

Furthermore, the franchisee agrees to indemnify and hold Buns On Fire harmless for the franchisee's failure to comply with a specific subsection regarding notice of an offer. While this doesn't directly address employee actions, it reinforces the franchisee's responsibility to protect Buns On Fire from liabilities arising from the franchisee's non-compliance. A prospective franchisee should clarify with Buns On Fire the extent to which they are liable for the actions of their employees and what specific measures Buns On Fire expects them to take to ensure employee compliance with the system standards.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.