What is the purpose of Exhibit A, the Location Addendum, in the Buns On Fire FDD?
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.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire FDD, Exhibit A is referenced in the context of granting a non-exclusive territory to a franchisee. Specifically, the franchisor grants the franchisee the right to operate a Buns on Fire restaurant at a location approved by the franchisor, and the territory is specified in Exhibit A. Furthermore, the franchise location described in Exhibit A cannot be modified or changed by the franchisee without prior written approval from Buns On Fire.
This means that Exhibit A likely serves to define the specific geographic area granted to the franchisee in which they will operate their Buns On Fire restaurant. It also outlines the approved location for the franchise. This is a crucial aspect of the franchise agreement, as it sets the boundaries within which the franchisee can conduct business and helps to avoid conflicts with other franchisees.
Prospective franchisees should carefully review Exhibit A to understand the exact territory they are being granted and the implications for their business. They should also be aware of the process for requesting a modification or change to the location, as this requires the franchisor's prior written approval and may involve signing a new franchise agreement and paying a relocation fee of $2,500.