What is the meaning of 'Franchisor' in the context of the Buns On Fire franchise agreement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
| | H. | | Address for notice to FRANCHISEE shall be at the Restaurant, unless another address is inserted | | here: []. |
ARTICLE I GRANT OF FRANCHISE
1.1 Grant and Protected Territory
Subject to the terms and conditions contained herein, the Franchisor hereby grants to Franchisee a non-exclusive right to operate a "Buns on Fire" restaurant at the location approved by the Franchisor in accordance with the provisions of this Agreement (the "Franchised Business"), and a non-exclusive license to use the Marks in the operation thereof, with all ownership rights in the Marks remaining with Franchisor. Except as otherwise provided in this Agreement, the Franchisor shall not establish nor license anyone other than Franchisee to establish any Franchised Business under the System within the territory specified in Exhibit "A" ("Protected Territory").
1.2 Site Selection Timeframe
Unless an approved location was selected by Franchisee at the time this Agreement is executed, Franchisee shall select the location of the Franchised Business, subject to the Franchisor's approval, within ninety (90) days after the effective date of this Agreement.
1.3 No Change of Franchise Location
The franchise location described in Exhibit "A" may not be modified or changed by the Franchisee without Franchisor's prior written approval. The Franchisee must request Franchisor's prior written approval in writing. To modify or change location, the Franchisee must be current in all obligations to Franchisor, whether under this Agreement or any other agreement, and must not be defaulting under this or any other agreement with Franchisor.
In the event that Franchisee's request to modify or change location is approved by the Franchisor, the Franchisee will be required, and must sign, Franchisor's then-current form of the Franchise Agreement. The then-current Franchise Agreement may contain different terms and conditions, for a term that may be equal to the remaining term of this Agreement. Unless we grant you a term that is longer than the remaining term under this Franchise Agreement, you will not be required make an Initial Franchise Fee payment for the relocated Franchised Business. However, you will be required to pay a Relocation Fee of twenty-five hundred dollars ($2,500) to us upon execution of the new Franchise Agreement.
1.4 Rights Reserved to Franchisor
Except as limited by Section 1.1, Franchisor and its affiliates retain all rights to establish and operate Franchised Businesses and to use the Marks outside of Franchisee's Protected Territory, including, without limitation:
(i.) to establish and operate and granting others the rights to establishing and operating a Buns on Fire restaurant or other venues offering and selling premium halal cuisine and other identical, comparable, or related goods and services through the same, similar or dissimilar channels of
- distribution under trade and service marks other than the Marks and under any terms and conditions Franchisor deems appropriate at the sole discretion of the Franchisor;
- (ii.) to produce, offer and sell, and granting others the rights to establishing and operating a Buns on Fire restaurant or other venue offering and selling premium halal cuisine and other identical, comparable, or related goods and services through the same, similar, or dissimilar channels of distribution under the Marks and under any terms and conditions the Franchisor deems appropriate at the sole discretion of the Franchisor;
- (iii.) to operate and granting others the right to operating Buns on Fire restaurants at "Non-Traditional Sites" under any terms and conditions the Franchisor deems appropriate at the sole discretion of the Franchisor, regardless of proximity to the Franchised Business. As used in this Agreement, Non-Traditional Sites shall include, without limitation, military bases, hotels, motels, high schools, and college campuses, airports, subways, train stations, travel plazas, toll roads, beaches, parks and other seasonal facilities, government buildings and establishments, prisons, hospitals, convenience stores, cafeterias, snack bars, trucks, casinos, sports or entertainment venues or stadiums, and retail locations being sublet under a lease to a master concessionaire, whether currently existing or constructed or established subsequent to the date hereof;
- (iv.) to sell products under the Marks at locations other than a franchised business such as grocery stores or other stores which offer packaged products; and
- (v.) to acquire and operate a business operating one or more food services businesses located or operating anywhere.
ARTICLE II DEVELOPMENT AND OPENING OF THE FRANCHISED BUSINESS
2.1 Franchised Business Premises
- (i.) Franchisee shall operate the Franchised Business from a location in the Protected Territory. Franchisee shall acquire or lease within ninety (90) days from the date of execution of this Agreement, an approved premises for the Franchised Business. The Franchisor shall have the right in its sole discretion, to require:
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- Franchisee to execute a Site Addendum Agreement in the form attached hereto;
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- Franchisee to conditionally assign such lease to the Franchisor (with the consent of the lessor, if required) by conditional lease assignment provisions in form annexed to Franchise Agreement as Exhibit "C" in order to secure performance of any and all of Franchisee's liabilities and obligations to the Franchisor; or
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3. That such lease contains substantially the following provisions:
- a. "Anything contained in this lease to the contrary notwithstanding, Lessor agrees that without its consent, this lease and the right, title and interest of the Lessee hereunder may be assigned by the Lessee to SMYA Ventures LLC, an Illinois limited liability company or its designee."
- b.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the term 'Franchisor' refers to the entity granting the franchise to the franchisee. Specifically, the Franchisor grants the franchisee a non-exclusive right to operate a Buns On Fire restaurant at an approved location and a non-exclusive license to use the brand's marks in the operation of the restaurant. All ownership rights in the marks remain with the Franchisor.
Buns On Fire retains specific rights, including establishing and operating franchised businesses and using the marks outside the franchisee's protected territory. This includes the right to establish Buns On Fire restaurants or other venues offering similar goods and services through various channels of distribution under different trade and service marks, or under the same marks, as deemed appropriate by the Franchisor. They can also operate Buns On Fire restaurants at non-traditional sites like military bases, hotels, and airports, regardless of their proximity to the franchisee's location.
The franchisee's rights to use the Buns On Fire marks, goodwill, and trade secrets are limited to the approved location, and any other use must be authorized in writing by the Franchisor. The franchisee acknowledges that they do not acquire any ownership rights in the marks through the franchise agreement, and at the Franchisor's request, the franchisee must transfer any additional rights acquired through the use of the marks back to the Franchisor.
Buns On Fire also has the right to purchase, merge, acquire, or affiliate with existing competitive or non-competitive franchise networks or other businesses and operate them under the Buns On Fire brand or other marks. However, if such businesses are located within a franchisee's protected territory, they will not change their names to "Buns on Fire". The FDD also stipulates that if Buns On Fire assigns its rights in the agreement, it is not obligated to remain in the restaurant business or offer any products or services to the franchisee.