Is the renewal of the Buns On Fire franchise agreement dependent on the lease agreement being renewable?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
The clauses referred to in Article 2.1 of the attached Franchise Agreement are as follows:
- (i.) The premises being leased hereunder shall be used solely for the operation of an "Buns on Fire" restaurant, during the time that the Franchise Agreement is still in effect.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
Based on the 2025 Buns On Fire Franchise Disclosure Document, the renewal of the franchise agreement is not explicitly stated to be dependent on the renewal of the lease agreement. However, the document emphasizes the importance of the lease for operating the Buns On Fire franchise.
The FDD states that the premises must be used solely for operating a Buns On Fire restaurant while the Franchise Agreement is in effect. Furthermore, Buns On Fire has the right to approve the location and may require a Site Addendum Agreement or a conditional lease assignment to secure the franchisee's obligations. The franchisor also requires that the lease contains provisions allowing assignment to SMYA Ventures LLC or its designee and that Buns On Fire receives notice of any lease defaults.
Upon termination of the Franchise Agreement, Buns On Fire has the right to demand that the franchisee vacate the premises according to the lease terms. While the renewal of the lease isn't directly tied to the franchise renewal, the franchisee's ability to continue operating the Buns On Fire business is clearly contingent on maintaining a valid lease for an approved location. A prospective franchisee should clarify with Buns On Fire the specific conditions under which a franchise agreement can be renewed, and how the lease terms might impact that process.