Does Buns On Fire have the right to approve all lease terms for the premises of the Franchised Business?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
packaged products; and
- (v.) to acquire and operate a business operating one or more food services businesses located or operating anywhere.
ARTICLE II DEVELOPMENT AND OPENING OF THE FRANCHISED BUSINESS
2.1 Franchised Business Premises
- (i.) 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
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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."
2.2 Approval of Lease Terms
The Franchisor shall have the right to approve any and all of the lease terms for the premises of the Franchised Business. In the event the Franchisor cures any default by Franchisee under such lease, the total amount of all costs and payments incurred by the Franchisor in effecting such cure shall be immediately due and owing by Franchisee to the Franchisor, including, but not limited to, any and all attorney's fees.
2.3 Execution of Lease and Acceptance by Franchisee
Franchisee's execution of a lease for the location of the Franchised Business shall constitute acceptance by Franchisee of such location and site and the terms of such a lease and shall constitute a waiver of any claim or rights against the Franchisor relating to Franchisee's choice of such site and location and of the terms of such a lease.
2.4 Prototype Plans and Specifications
The Franchisor will provide Franchisee prototype or protostyle plans and specifications for Franchisee's Franchised Business reflecting the Franchisor's requirements for dimensions, exterior design, interior design and layout, image, building materials, fixtures, equipment, furniture, signs and decor. Franchisee agrees to use Franchisor's approved architecture and engineering firms to prepare all construction/design plan set for the Franchised Business.
2.5 Development of Franchised Business
Within ninety (90) days after attaining possession of the premises of the Franchised Business and being furnished with the above-described plans and specifications, Franchisee will do, or cause to be done the following:
- (i.) Secure all financing required to fully develop the Franchised Business;
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, the franchisor has specific rights regarding the approval of lease terms for the franchisee's business premises. The franchisee must operate the Buns On Fire business from an approved location within their protected territory and must acquire or lease the premises within 90 days of signing the Franchise Agreement.
The franchisor has the right to require the franchisee to execute a Site Addendum Agreement or conditionally assign the lease to Buns On Fire to secure the franchisee's obligations. The lease must contain provisions allowing the franchisee to assign the lease to SMYA Ventures LLC (or its designee) without the lessor's consent, allowing the lessor to disclose sales data to Buns On Fire upon request, and requiring the lessor to notify Buns On Fire of any lease defaults, giving Buns On Fire the right to cure such defaults.
Furthermore, the lease for the premises must be submitted to Buns On Fire for written approval before it is executed by the franchisee and the lessor. The lease must stipulate that the premises will be used only for the franchised business, that the landlord has examined Buns On Fire's design concepts and consents to the use of their marks and signage, and that the landlord will provide Buns On Fire with copies of all notices sent to the franchisee. The franchisee cannot assign occupancy rights or extend/renew the lease without Buns On Fire's prior written consent, and Buns On Fire has the right to enter the premises to protect its marks or cure any default. Buns On Fire also has the right to assume the franchisee's occupancy rights upon default or termination, and any changes to the lease affecting these terms require Buns On Fire's prior written approval.