In Maryland, when does the franchisee commence operation of their Buns On Fire Restaurant?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
to compete to Franchisee's Territory for all franchises sold in the State of Indiana.
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- Section 24.11 of the Franchise Agreement ("Injunction") will not apply to franchises offered and sold in the State of Indiana.
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- Section 24.10.5 is deleted from the Franchise Agreement.
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- Notwithstanding the terms of Article 15 of the Franchise Agreement ("Indemnification"), Franchisee will not be required to indemnify Franchisor and the other Indemnitees for any liability caused by Franchisee's proper reliance on or use of procedures or materials provided by Franchisor or caused by Franchisor's negligence.
[SIGNATURE PAGE FOLLOWS.]
SMYA VENTURES LLC
MARYLAND ADDENDUM TO FRANCHISE AGREEMENT
Notwithstanding anything to the contrary set forth in the Franchise Disclosure Document or Franchise Agreement, the following provisions shall supersede and apply to all franchises offered and sold under the laws of the State of Maryland.
- No release language set forth in Section 3.2.1(g) of the Franchise Agreement (concerning requirements for renewal) or Section 14.4.1(n) of the Franchise Agreement (concerning requirements for transfer) shall relieve the Franchisor or any other person, directly or indirectly, from liability imposed by the laws concerning franchising of the State of Maryland. Sections 3.2.1(g) and 14.4.1(n) of the Franchise Agreement are each hereby amended to add the following language:
"The release requirement of this Section is not intended to nor shall it act as a
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, a franchisee in Maryland does not have to pay the initial franchise fee until Buns On Fire has met its pre-opening obligations and the franchisee has commenced operations of their Buns On Fire restaurant. This is outlined in the Maryland Addendum to the Franchise Agreement, which supersedes any conflicting information in the standard agreement. This deferral of the initial franchise fee is a specific protection for franchisees in Maryland.
This means that a prospective Buns On Fire franchisee in Maryland will not be required to pay the initial franchise fee upfront. Instead, the payment is delayed until Buns On Fire fulfills its pre-opening responsibilities, such as site selection assistance, training, and providing operations manuals. Only after these obligations are met and the franchisee begins running their restaurant does the initial franchise fee become due.
This arrangement benefits the franchisee by reducing their initial financial burden and aligning the franchisor's interests with the franchisee's success. It ensures that Buns On Fire is motivated to provide the necessary support to get the restaurant up and running before receiving the franchise fee. This deferred payment structure is a notable advantage for franchisees in Maryland compared to standard franchise agreements where the initial fee is typically paid upfront.