factual

What is the maximum area of the Protected Territory for a Buns On Fire franchise?

Buns_On_Fire Franchise · 2025 FDD

Answer from 2025 FDD Document

You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. The Franchise Agreement does not grant you any territorial rights beyond whatever geographic area identified in an exhibit to the Franchise Agreement. There will, however, be protected geographical territory ("Protected Territory"). The Protected Territory, as designated in Exhibit A to the Franchise Agreement, will be an area up to five (5) miles surrounding the restaurant determined by shortest driving distance using Google Maps or a similar mapping program. Except for Non-Traditional Sites as defined below and in Article 1.4 of the Franchise Agreement, Franchisor agrees not to establish another Franchised Business within the Franchisee's Protected Territory. The Protected Territory will be a substantially smaller area around the Franchise Business if it is located in an urban or highly populated setting. For locations in urban or highly populated areas the Protected Territory may be an area of only several blocks around the location approved for the Franchise Business, and for locations in suburban areas the Territory may be up to a two-mile area surrounding the restaurant, also determined by shortest driving distance using Google Maps or a similar mapping program. In all cases the Protected Territory will be set forth in the Franchise Agreement. During the term of the Franchise Agreement we will not, without your consent, establish or franchise another to establish a franchise within your Protected Territory under the Franchise Agreement except for the right to operate and to grant others the right to operate restaurants at "Non-Traditional Sites" (as defined in the Franchise Agreement) under any terms and conditions the Franchisor deems appropriate, regardless of proximity to the Franchise Business as provided in the Franchise Agreement. The designation of your Protected Territory does not mean that other Franchised Business may not solicit, market or advertise to customers within your Protected Territory. It solely means the Franchisor agrees not to establish Franchised Business within the Protected Territory. The relocation of any Franchise Business will be subject to our prior written approval, which may be withheld on whatever basis we determine is in our best interests. If we approve relocation of the Franchise Business, its new location must not be in the Protected Territory of another Franchised Business.

Source: Item 12 — TERRITORY (FDD pages 33–35)

What This Means (2025 FDD)

According to the 2025 Buns On Fire Franchise Disclosure Document, franchisees do not receive an exclusive territory. However, Buns On Fire does offer a Protected Territory, which is a geographical area defined in Exhibit A of the Franchise Agreement. The size of this Protected Territory varies depending on the location of the restaurant.

For Buns On Fire restaurants not located in urban or highly populated settings, the Protected Territory extends up to five miles surrounding the restaurant. This distance is determined by the shortest driving distance using Google Maps or a similar mapping program. However, for restaurants located in urban or highly populated areas, the Protected Territory is substantially smaller, potentially only encompassing several blocks around the approved location. For suburban locations, the territory may extend up to a two-mile radius around the restaurant, also determined by the shortest driving distance using Google Maps.

Buns On Fire agrees not to establish another franchised business within the franchisee's Protected Territory, with the exception of Non-Traditional Sites. The designation of a Protected Territory does not prevent other franchisees from soliciting, marketing, or advertising to customers within that territory; it only restricts Buns On Fire from establishing another franchised business there. Franchisees need to be aware that the Protected Territory is defined in the Franchise Agreement and can vary significantly based on the restaurant's location. Relocation of a franchise is subject to Buns On Fire's approval and cannot be within another franchisee's Protected Territory.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.