If a Buns On Fire franchisee is a partnership, what constitutes a dissolution that would trigger termination?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
All terms used but not otherwise defined in this Internet Listing Agreement shall have the meanings set forth in the Franchise Agreement. "Termination" of the Franchise Agreement shall include, but shall not be limited to, the voluntary termination, involuntary termination, or natural expiration thereof.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
Based on the 2025 Buns On Fire Franchise Disclosure Document, the term "Termination" regarding the Franchise Agreement includes voluntary termination, involuntary termination, or natural expiration. However, the document does not specifically define what constitutes a dissolution of a partnership that would trigger termination of the franchise agreement.
While the FDD does not explicitly define partnership dissolution, it does state that if the franchisee is a partnership, certain covenants apply to any partner. Specifically, during the term of the agreement, no partner can engage in a competitive business. After termination, expiration, or non-renewal, these restrictions continue for two years, unless the termination was due to the fault or action of the franchisor and not due to default of the franchisee or any partner.
A prospective Buns On Fire franchisee operating as a partnership should seek clarification from the franchisor regarding specific events that would constitute a partnership dissolution and trigger termination. Understanding these conditions is crucial for all partners to avoid unintentional breaches of the agreement.