What legend must be printed on all certificates of an entity to which a Buns On Fire franchise is transferred?

According to the 2025 Buns On Fire Franchise Disclosure Document, if a franchisee transfers their franchise to a corporation or limited liability company, all certificates of that entity must bear a specific legend. This is required to be printed legibly and conspicuously on the front of each certificate. The purpose of this requirement is to ensure that any potential future shareholders or members of the entity are aware that the entity's operations are subject to the terms and conditions of the Buns On Fire Franchise Agreement.

The required legend states: "The transfer of this certificate is subject to the terms and conditions of a certain Franchise Agreement entered into with SMYA Ventures LLC, dated , 20 "." The franchisee must fill in the date of the franchise agreement in the blank space. This disclosure is crucial because it informs anyone holding a certificate in the entity that their investment is tied to a franchise agreement with SMYA Ventures LLC, the franchisor of Buns On Fire.

This requirement protects Buns On Fire by ensuring that all parties involved in the franchise operation, even indirectly through ownership in a corporate entity, are aware of and bound by the franchise agreement. It also serves as a form of due diligence for potential investors in the franchisee's entity, alerting them to the existence of the franchise agreement and the obligations it imposes. Prospective franchisees should understand this requirement and ensure compliance to avoid any potential legal issues related to the transfer of the franchise to a corporate entity.