From whom does Buns On Fire license the right to use the Proprietary Marks?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
We license the right to use Proprietary Marks from SMYA Ventures LLC ("Licensor"). All of the Marks are licensed to us pursuant to a License Agreement with Licensor (the "License Agreement"). In the License Agreement, Licensor authorizes us to use the Marks in connection with the offer, sale, and support of Franchise Businesses. The License Agreement does not contain any significant limitations on our right to use or license the Marks to you and may be terminated unilaterally by either party upon a material breach of the License Agreement. Upon termination of the License Agreement, we must immediately discontinue the use of the Marks, and no arrangement regarding the assignment of all of our franchise agreements licensing the use of the Marks to Licensor and Licensor's assumption of all obligations under such agreements arising from and after their assignment is contained in the License Agreement.
Source: Item 13 — TRADEMARKS (FDD pages 35–37)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, Buns On Fire licenses the right to use its Proprietary Marks from SMYA Ventures LLC, which is referred to as the Licensor. Buns On Fire’s rights to use these marks are established through a License Agreement with the Licensor, which authorizes Buns On Fire to use the marks for offering, selling, and supporting franchise businesses. This agreement allows Buns On Fire to grant franchisees the right to use the Proprietary Marks within their franchise operations.
The License Agreement between Buns On Fire and SMYA Ventures LLC does not significantly limit Buns On Fire's ability to license the marks to franchisees. Either party can terminate the agreement if there is a material breach. However, the License Agreement does not include any arrangement for the assignment of franchise agreements to the Licensor or the Licensor's assumption of obligations if the License Agreement is terminated.
Prospective franchisees should be aware that their right to use the Proprietary Marks is contingent upon Buns On Fire maintaining its License Agreement with SMYA Ventures LLC. While the FDD states that there are no significant limitations on Buns On Fire's right to license the marks and that the agreement can only be terminated upon a material breach, it is important to understand the potential implications should the License Agreement be terminated. Buns On Fire states that upon termination, they must immediately discontinue the use of the Marks.