factual

What is the relationship between the Guaranty and other agreements between the Buns On Fire franchisee and franchisor?

Buns_On_Fire Franchise · 2025 FDD

Answer 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;

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

What This Means (2025 FDD)

Based on the 2025 Buns On Fire Franchise Disclosure Document, there is no mention of a 'Guaranty' agreement. The document does outline several agreements and conditions related to the franchise agreement. These include site selection and lease terms, training requirements, and the franchisor's rights regarding business combinations and assignment of rights.

Specifically, the franchisee must operate from an approved location within a protected territory and acquire or lease the premises within 90 days of signing the agreement. Buns On Fire has the right to require the franchisee to execute a Site Addendum Agreement or conditionally assign the lease to the franchisor to secure the franchisee's obligations. The lease may also contain provisions allowing the lessor to disclose sales information to Buns On Fire and requiring the lessor to notify Buns On Fire of any defaults by the franchisee, giving Buns On Fire the option to cure the default.

Prior to opening, at least one partner from the ownership group and at most two managers must complete Buns On Fire's initial training program to the franchisor's satisfaction. The franchisor also retains the right to purchase, merge, acquire, or affiliate with other businesses, including competitors, and operate them under the Buns On Fire brand, except within the franchisee's protected territory. The franchisee must also notify Buns On Fire of any offers to buy the franchise.

Prospective franchisees should ask Buns On Fire about any specific 'Guaranty' agreement required, its terms, and how it interacts with the other agreements mentioned in the FDD. This will ensure a clear understanding of all obligations and potential liabilities.

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.