factual

Does the release in the Buns On Fire franchise agreement cover claims that are currently unknown?

Buns_On_Fire Franchise · 2025 FDD

Answer from 2025 FDD Document

ment involves the use of undue influence by the franchisor to induce a franchisee to surrender any rights given to him/her under the franchise, that provision may not be enforceable.

ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF WASHINGTON

In recognition of the requirements of the Washington Franchise Investment Protection Act, Wash. Rev. Code §§ 19.100.180, the Franchise Disclosure Document for Buns on Fire, in connection with the offer and sale of franchises for use in the State of Washington shall be amended to include the following:

  1. Item 17, "Renewal, Termination, Transfer and Dispute Resolution," shall be amended by the addition of the following paragraphs at the conclusion of the Item:

The state of Washington has a statute, RCW 19.100.180, which may supersede the license agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the license agreement in your relationship with the franchisor including the areas of termination and renewal of your license.

In any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration, or as determined by the arbitrator.

In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.

A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.

Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.

    1. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
    1. Each provision of this addendum to the Disclosure Document shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Washington Franchise Investment Protection Act, Wash. Rev. Code §§ 19.100.180, are met independently without reference to this addendum to the Disclosure Document.

EXHIBIT B LIST OF STATE ADMINISTRATORS

Listed here are the names, addresses and telephone numbers of the state agencies having responsibility for franchising disclosure/registration laws and for service of process. We may not yet be registered to sell franchises in any or all of these states.

CALIFORNIA NEW YORK
Commissioner of the Department of Financial Protection New York State Department of Law
and Innovation Investor Protection Bureau, Franchise Section 28 Liberty
Department of Financial Protection and Innovation Street, 21st Floor
320 West Fourth Street, Suite 750 Los Angeles, New York, New York 10005
California 90013-2344 (212) 416-8236
(213) 876-7500
Toll Free: (866) 275-2677
FLORIDA TEXAS
FDACS Secretary of State Registrations Unit
Division P.O. Box 13193
of
Consumer
Services
Attn:
Business
Opportunities Austin, TX 78711-13193
P.O. Box 6700
Tallahassee, FL 32314-6700
ILLINOIS RHODE ISLAND
Chief, Franchise Bureau Attorney General's Office 500 Department of Business Regulation Securities Division
South Second Street Springfield, Illinois 62701 — Franchise Section 1511 Pontiac Avenue, Bldg. 69-2
(217) 782-4465 Cranston, Rhode Island 02920 (401) 462-9500
INDIANA KENTUCKY
Secretary of State Securities Division Office of the Attorney General Consumer Protection
302 West Washington, Room E111 Indianapolis, Indiana Division 1024 Capital Center Drive Frankfort, KY
46204 40601-8204
(317) 232-6681
MARYLAND VIRGINIA
Securities Commissioner Office of the Attorney General State Corporation Commission
Securities Division Division of Securities and Retail Franchising 1300 East
200 St. Paul Place Baltimore, Maryland 21202 Main Street, 9th Floor Richmond, Virginia 23219 (804) 371-9051
MICHIGAN WASHINGTON
Department of Attorney General Franchise Section Department of Financial Institutions
G. Mennen Williams Building Division of Securities
525 W. Ottawa Street P.O. Box 41200
P.O. Box 30736 Olympia, Washington 98504-1200
Lansing, Michigan 48909 (360) 902-8715
(517) 335-7622

EXHIBIT C LIST OF AGENTS FOR SERVICE OF PROCESS

The following officials or state agencies are designated as our agent for service of process in accordance with applicable state laws. We may register in one or more of these states. There may be states in addition to those listed below in which Buns on Fire has appointed an agent for service of process.

CALIFORNIA Commissioner of the Department of Financial Protection and Innovation Department of Financial Protection and Innovation 320 West Fourth Street, Suite 750 Los Angeles, California 90013-2344 (213) 876-7500 Toll Free: (866) 275-2677 NEW YORK New York State Department of Law Investor Protection Bureau, Franchise Section 28 Liberty Street, 21st Floor New York, New York 10005 (212) 416-8236
FLORIDA FDACS Division of Consumer Services Attn: Business Opportunities P.O. Box 6700 Tallahassee, FL 32314-6700 TEXAS Secretary of State Registrations Unit P.O. Box 13193 Austin, TX 78711-13193
ILLINOIS Chief, Franchise Bureau Attorney General’s Office 500 South Second Street Springfield, Illinois 62701 (217) 782-4465 RHODE ISLAND Department of Business Regulation Securities Division — Franchise Section 1511 Pontiac Avenue, Bldg. 69-2 Cranston, Rhode Island 02920 (401) 462-9500
INDIANA Secretary of State Securities Division 302 West Washington, Room E111 Indianapolis, Indiana 46204 (317) 232-6681 KENTUCKY Office of the Attorney General Consumer Protection Division 1024 Capital Center Drive Frankfort, KY 40601-8204
MARYLAND Securities Commissioner Office of the Attorney General Securities Division 200 St. Paul Place Baltimore, Maryland 21202 VIRGINIA State Corporation Commission Division of Securities and Retail Franchising 1300 East Main Street, 9th Floor Richmond, Virginia 23219 (804) 371-9051
MICHIGAN Department of Attorney General Franchise Section G. Mennen Williams Building 525 W. Ottawa Street P.O. Box 30736 Lansing, Michigan 48909 (517) 335-7622 WASHINGTON Department of Financial Institutions Division of Securities P.O. Box 41200 Olympia, Washington 98504-1200 (360) 902-8715

EXHIBIT D FORM OF FRANCHISE AGREEMENT

FRANCHISEE:
[]
FRANCHISE LOCATION:
[]
DATE OF AGREEMENT:
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TABLE OF CONTENTS

day of 202 .
executed the same for the purposes and consideration therein expressed and in the capacity therein stated.
--- --- ---
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 20 .

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's release may cover claims that are currently unknown, but this is subject to certain state laws. Specifically, addenda for Maryland, Washington, Indiana, Illinois, North Dakota and Rhode Island modify the standard franchise agreement to protect franchisees' rights under those states' franchise laws.

For example, in Maryland, the release requirements in Sections 3.2.1(g) and 14.4.1(n) of the Franchise Agreement do not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. Furthermore, claims arising under Maryland franchise law must be brought within three years of the franchise grant. Similarly, Washington law may supersede the franchise agreement regarding termination and renewal, and releases or waivers of rights cannot include rights under the Washington Franchise Investment Protection Act unless executed in a negotiated settlement with independent counsel.

In Illinois, any provision that binds a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. Additionally, no statement signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on the franchisor. Indiana law mandates that releases cannot include claims arising under the Indiana Franchise Disclosure Law or the Indiana Deceptive Franchise Practices Act, and Indiana law governs any cause of action under these laws. North Dakota franchisees need not pay initial fees until their Buns on Fire restaurant commences business. These state-specific addenda collectively ensure that franchisees retain certain rights and protections regardless of the standard release language in the franchise agreement.

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.