Does Buns On Fire require the franchisee to lease or purchase the site?
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 Buns On Fire's 2025 Franchise Disclosure Document, franchisees are required to operate their franchised business from an approved location within their protected territory. The franchisee is responsible for acquiring or leasing the premises within 90 days of signing the franchise agreement.
Buns on Fire retains the right to require the franchisee to execute a Site Addendum Agreement. They can also require the franchisee to conditionally assign the lease to Buns on Fire to secure the franchisee's obligations to the company. The lease agreement must include provisions that allow the franchisee to assign the lease to SMYA Ventures LLC (or its designee) without the lessor's consent and allow the lessor to disclose sales information to Buns on Fire upon request. Additionally, the lessor must provide Buns on Fire with written notice of any default by the franchisee and allow Buns on Fire the option to cure the default.
Upon termination of the franchise agreement, the franchisee is obligated to vacate and surrender the premises according to the terms of the lease or conditional lease assignment. This ensures that Buns on Fire can regain control of the location if the franchise agreement ends.