Who is responsible for the expenses related to the construction of a Buns On Fire franchise?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
permission to Franchisee for relocating the Franchised Business to a location approved by the Franchisor. Any such relocation will be at Franchisee's sole expense, including payment of Franchisor's then-current relocation fee.
2.10 De-identification of Original Approved Location
In the event of a relocation of the Franchised Business, Franchisee shall promptly remove from the first Franchised Business premises, and discontinue using for any purposes, any and all signs, fixtures, furniture, posters, furnishings, equipment, menus, advertising materials, stationery supplies, forms and other articles which display any of the Marks or any distinctive features or designs associated with Buns on Fire. Furthermore, Franchisee shall, at Franchisee's expense, immediately make such modifications or alterations as may be necessary to distinguish the first Franchised Business so clearly from its former appearance and from other Buns on Fire restaurants and to prevent any possibility of confusion therewith by the public (including, without limitation, removal of all distinctive physical and structural features identifying Buns on Fire and removal of all distinctive signs and emblems). Franchisee shall, at Franchisee's expense, make such specific additional changes as the Franchisor may reasonably request for this purpose. If Franchisee fails to initiate immediately or complete such alterations within such period of time as the Franchisor deems appropriate, Franchisee agrees that the Franchisor or its designated agents may enter the premises of the first Franchised Business and adjacent areas at any time to make such alterations, at Franchisee's sole risk and expense, without responsibility for any actual or consequential damages to the property of Franchisee or others, and without liability for trespass or other tort or criminal act. Franchisee expressly acknowledges that Franchisee's failure to make such alterations will cause irreparable injury to the Franchisor and consents to entry, at Franchisee's expense, of an ex-parte order by a court of competent jurisdiction authorizing the Franchisor or its agents to take such action, if the Franchisor seeks such an order. Compliance with the foregoing shall be a condition subsequent to the Franchisor's approval of any relocation request by Franchisee, and in the event complete de-identification of the first Franchised Business premises is not promptly and completely undertaken, the Franchisor may then revoke its permission for relocation and declare a default under this Agreement pursuant to Article XVII hereof.
ARTICLE III PROPRIETARY MARKS AND GOODWILL
3.1 Definition of "Marks"
When used in this Agreement, "Marks" mean the trademarks and service marks which are used to identify the Buns on Fire franchised businesses and to distinguish them from that of any other business, and the trademarks, service marks, trade names, logos and commercial symbols as may be designated by the Franchisor from time to time for use in connection with the System.
3.2 Authorized Use of Marks
Franchisee is authorized to use the Marks, goodwill and trade secrets in the operation of the
Franchised Business only at the approved location. Nothing in this Agreement shall be construed as authorizing or permitting their use at any other location or for any other purpose except as may be authorized in writing by Franchisor. Franchisee understands and agrees that the limited license to use the Marks granted hereby applies only to such proprietary marks as are designated by Franchisor, and which are not subsequently designated by Franchisor as being withdrawn from use, together with those which may hereafter be designated by Franchisor in writing. Franchisee expressly understands and agrees that he/she is bound not to represent in any manner that he/she has acquired any ownership or equitable rights in any of the Marks by virtue of the limited license granted hereunder, or by virtue of Franchisee's use of any of the Marks.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the franchisee is generally responsible for the expenses related to modifying a location to meet brand standards, as well as maintaining compliance with the Americans with Disabilities Act (ADA). Specifically, if a franchisee relocates their Buns On Fire restaurant, they are responsible for removing all branding and making necessary modifications to distinguish the former location from other Buns On Fire locations, at the franchisee's expense. If the franchisee fails to do so promptly, Buns On Fire has the right to enter the premises and make the alterations themselves, also at the franchisee's expense.
Furthermore, the franchisee certifies that their restaurant complies with all applicable accessibility laws, including the ADA. The franchisee acknowledges that this certification is a requirement and doesn't imply any ownership, control, or operation of the restaurant by Buns On Fire. The franchisee also agrees to indemnify Buns On Fire and its officers, directors, and employees from any claims, losses, costs, expenses, liabilities, compliance costs, and damages related to the franchisee's compliance with the ADA, including attorney's fees.
These stipulations highlight the financial responsibilities that a Buns On Fire franchisee undertakes regarding the physical premises of their restaurant. The franchisee bears the costs of adapting a location to Buns On Fire standards, maintaining its distinctiveness if relocated, and ensuring compliance with accessibility laws. This arrangement is fairly typical in franchising, where franchisees usually bear the costs of build-out, remodeling, and legal compliance for their specific location.