How long can Buns On Fire manage the Franchised Business for each interval?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
The clauses referred to in Article 2.1 of the attached Franchise Agreement are as follows:
(i.) The premises being leased hereunder shall be used solely for the operation of an "Buns on Fire" restaurant, during the time that the Franchise Agreement is still in effect.
(ii.) Lessor has examined Franchisor's standard design concepts and specifications and consents to Lessee's use of same and of the Marks and such signage as the Franchisor may prescribe for the Franchised Business.
(iii.) Lessee may not assign all or any part of its occupancy rights, or extend the term or renew the lease, without Franchisor's prior written consent.
(iv.) Lessor shall furnish Franchisor a copy of the executed lease, including all attachments thereto and related agreements, if any, within five (5) days after its execution, and no change or amendment to such lease affecting the above terms and conditions shall be effective without Franchisor's prior written approval.
(v.) Notwithstanding anything to the contrary contained in this Lease, it is expressly understood and agreed that if the Franchise Agreement dated the day of , 20 between the Lessee and the Franchisor expires or is terminated for any reason whatsoever, the Lessee's rights hereunder shall, at the option of the Franchisor, be transferred and assigned to it.
Said option may be exercised by the Franchisor giving the Lessor notice in writing within thirty (30) days following the expiration or termination of the said Franchise Agreement, such notice to specify, inter alia, the date of such expiration or termination.
The Lessee acknowledges and agrees that the Lessor may rely upon such notice and shall not be required to inquire into the due execution thereof or the accuracy of the statements set forth therein.
It is further agreed that such notice shall, without further act or formality, operate as an effective assignment of the Lessee's right hereunder to the Franchisor and the assumption by the Franchisor of the covenants herein required to be observed or performed by the Lessee.
The Franchisor shall thereafter have the right to assign or sublet the Premises to such person as it may designate, provided that in such event that this clause be contained therein.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
Based on the 2025 Buns On Fire Franchise Disclosure Document, the circumstances under which Buns On Fire can manage the Franchised Business relate to lease agreements and termination scenarios.
Specifically, if the Franchise Agreement expires or is terminated for any reason, Buns On Fire has the option to have the lease transferred and assigned to them. To exercise this option, Buns On Fire must provide written notice to the lessor within thirty (30) days following the expiration or termination of the Franchise Agreement, specifying the date of such expiration or termination. This notice then operates as an effective assignment of the lessee's rights to Buns On Fire, allowing Buns On Fire to assume the lease obligations.
Following the lease assignment, Buns On Fire has the right to assign or sublet the premises to another party of their choosing, provided that the clause allowing for this assignment is included in any subsequent agreement. This arrangement ensures that Buns On Fire retains control over the location and can continue operating a Buns On Fire restaurant at that site, even if the original franchisee is no longer involved. This is a mechanism to ensure business continuity and protect the brand's presence in a specific market.