factual

Is the Buns On Fire Protected Territory defined in the franchise agreement?

Buns_On_Fire Franchise · 2025 FDD

Answer from 2025 FDD Document

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").

Source: Item 23 — RECEIPTS (FDD pages 49–200)

What This Means (2025 FDD)

According to the 2025 Buns On Fire Franchise Disclosure Document, the franchise agreement does grant a Protected Territory to the franchisee. Specifically, Article I, Section 1.1 states that the franchisor grants 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. Except as otherwise provided in the agreement, Buns On Fire will not establish or license anyone else to establish a franchised business under the system within the territory specified in Exhibit "A," which defines the Protected Territory.

This means that, generally, Buns On Fire will not open another franchise or allow another franchisee to open a location within the franchisee's Protected Territory. However, it is important to note that the grant of territory is non-exclusive, and the franchisor retains certain rights. Section 1.4 states that Buns On Fire and its affiliates retain all rights to establish and operate franchised businesses and use the marks outside the franchisee's Protected Territory.

Furthermore, Buns On Fire reserves the right to operate Buns On Fire restaurants at Non-Traditional Sites, regardless of their proximity to the franchised business. Non-Traditional Sites include locations such as military bases, hotels, college campuses, airports, and other similar venues. The specific boundaries and conditions of the Protected Territory are detailed in Exhibit "A" of the franchise agreement, which a prospective franchisee should carefully review to understand the extent of their territorial protection and the franchisor's reserved rights.

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.