Is Buns On Fire obligated to approve every site selected by the franchisee?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
You must operate the Franchise Business from the approved location within the Territory, which should be at least 1,200 square feet in size and include sufficient space for among other things, an administrative desk space, and access to parking facilities. You must obtain our approval of the site you select for location of your Franchise Business. When you have found a site which you believe to be suitable for your Franchise Business, you must submit a completed site approval package to us (the "Site Approval Package") and other materials which we may reasonably require. We will have thirty (30) days to approve or disapprove of the site that you propose.
Our site selection and/or acceptance is based on factors such as residential population, traffic counts and patterns, competing establishments, median income levels, availability of parking, rental and lease terms, physical configuration of the site and growth trends in the area. We are not obligated to approve any site selected, but we will not unreasonably withhold our approval of a site that meets the minimum criteria for your business premises. You must sign a Conditional Assignment of Lease in a form designated by us. If you do not find a suitable site within six (6) months, we can terminate the Franchise Agreement and keep the Initial Franchise Fee. Our approval of your site is not a guaranty or warranty that the Franchise Business will be successful.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 25–33)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Buns On Fire is not obligated to approve every site selected by the franchisee. The franchisee must operate the business from a location approved by Buns On Fire within the designated territory. The location should be a minimum of 1,200 square feet and include space for an administrative desk and parking. The franchisee needs to submit a completed Site Approval Package to Buns On Fire for evaluation. Buns On Fire then has 30 days to either approve or disapprove the proposed site.
Buns On Fire bases its site selection and acceptance on factors such as residential population, traffic patterns, competing businesses, income levels, parking availability, lease terms, the site's physical layout, and area growth trends. While Buns On Fire is not obligated to approve every site, they will also not unreasonably withhold approval of a site that meets the minimum criteria. The franchisee is required to sign a Conditional Assignment of Lease in a form designated by Buns On Fire.
If a franchisee fails to find a suitable site within six months, Buns On Fire has the right to terminate the Franchise Agreement and retain the initial franchise fee. The FDD emphasizes that Buns On Fire's approval of a site does not guarantee the success of the franchise. This is a fairly standard practice in franchising, as the franchisor wants to ensure the location is viable but cannot control all market factors.
Prospective franchisees should carefully consider these site selection terms. The six-month deadline to find a suitable location could put pressure on franchisees to choose a location quickly. Franchisees should also conduct their own due diligence on potential sites, considering factors beyond those listed by Buns On Fire, to ensure they choose a location that maximizes their chances of success.