Can Buns On Fire require a franchisee to execute a Site Addendum Agreement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall operate the Franchised Business from a location in the Protected Territory. Franchisee shall acquire or lease within ninety (90) days from the date of execution of this Agreement, an approved premises for the Franchised Business. The Franchisor shall have the right in its sole discretion, to require:
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- Franchisee to execute a Site Addendum Agreement in the form attached hereto;
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- Franchisee to conditionally assign such lease to the Franchisor (with the consent of the lessor, if required) by conditional lease assignment provisions in form annexed to Franchise Agreement as Exhibit "C" in order to secure performance of any and all of Franchisee's liabilities and obligations to the Franchisor; or
3. That such lease contains substantially the following provisions:
- a. "Anything contained in this lease to the contrary notwithstanding, Lessor agrees that without its consent, this lease and the right, title and interest of the Lessee hereunder may be assigned by the Lessee to SMYA Ventures LLC, an Illinois limited liability company or its designee."
- b. "Lessee hereby agrees that Lessor may, upon the written request of Buns on Fire, disclose to Buns on Fire all reports, information or data in Lessor's possession with respect to sales made in, upon, or from the leased premises."
- c. "Lessor shall give written notice to Buns on Fire (concurrently with the giving of such notice to Lessee) of any default by Lessee under the lease and Buns on Fire shall have the right, in its sole discretion, to cure any such default. Such notice shall be sent to Buns on Fire at its headquarters, or such other address as Buns on Fire may specify in writing to Lessor."
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Buns On Fire has the right to require a franchisee to execute a Site Addendum Agreement. This agreement is in the form attached to the franchise agreement.
In addition to the Site Addendum Agreement, Buns On Fire can also require the franchisee to conditionally assign the lease to Buns On Fire. This assignment, requiring lessor consent if needed, is secured via conditional lease assignment provisions outlined in Exhibit "C" of the Franchise Agreement. These measures ensure the franchisee fulfills their obligations to Buns On Fire.
Furthermore, Buns On Fire outlines specific provisions that must be included in the lease agreement. These include the lessor's agreement to allow lease assignment to SMYA Ventures LLC (or its designee) without their consent, the lessor's agreement to disclose sales data to Buns On Fire upon request, and the lessor's obligation to notify Buns On Fire of any lease defaults by the franchisee, granting Buns On Fire the right to cure such defaults. These stipulations provide Buns On Fire with significant oversight and control over the leased premises and the franchisee's compliance with the lease terms.