What right is reserved by Buns On Fire in Section 1.6 of the Franchise Agreement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
1.4 Rights Reserved to Franchisor
Except as limited by Section 1.1, Franchisor and its affiliates retain all rights to establish and operate Franchised Businesses and to use the Marks outside of Franchisee's Protected Territory, including, without limitation:
(i.) to establish and operate and granting others the rights to establishing and operating a Buns on Fire restaurant or other venues offering and selling premium halal cuisine and other identical, comparable, or related goods and services through the same, similar or dissimilar channels of
- distribution under trade and service marks other than the Marks and under any terms and conditions Franchisor deems appropriate at the sole discretion of the Franchisor;
- (ii.) to produce, offer and sell, and granting others the rights to establishing and operating a Buns on Fire restaurant or other venue offering and selling premium halal cuisine and other identical, comparable, or related goods and services through the same, similar, or dissimilar channels of distribution under the Marks and under any terms and conditions the Franchisor deems appropriate at the sole discretion of the Franchisor;
- (iii.) to operate and granting others the right to operating Buns on Fire restaurants at "Non-Traditional Sites" under any terms and conditions the Franchisor deems appropriate at the sole discretion of the Franchisor, regardless of proximity to the Franchised Business. As used in this Agreement, Non-Traditional Sites shall include, without limitation, military bases, hotels, motels, high schools, and college campuses, airports, subways, train stations, travel plazas, toll roads, beaches, parks and other seasonal facilities, government buildings and establishments, prisons, hospitals, convenience stores, cafeterias, snack bars, trucks, casinos, sports or entertainment venues or stadiums, and retail locations being sublet under a lease to a master concessionaire, whether currently existing or constructed or established subsequent to the date hereof;
- (iv.) to sell products under the Marks at locations other than a franchised business such as grocery stores or other stores which offer packaged products; and
- (v.) to acquire and operate a business operating one or more food services businesses located or operating anywhere.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Section 1.4 of the Franchise Agreement outlines the rights that Buns On Fire reserves as the franchisor. These reserved rights allow Buns On Fire and its affiliates to establish and operate franchised businesses and use their trademarks outside of a franchisee's protected territory, with some limitations specified in Section 1.1.
Specifically, Buns On Fire retains the right to establish and operate Buns On Fire restaurants or other venues that offer and sell premium halal cuisine and related goods and services through various distribution channels, using trade and service marks other than the registered Marks, under terms and conditions they deem appropriate. They can also produce, offer, and sell similar goods and services under the Marks through similar distribution channels, again under terms they deem appropriate.
Furthermore, Buns On Fire reserves the right to operate or grant others the right to operate Buns On Fire restaurants at "Non-Traditional Sites" such as military bases, hotels, schools, airports, travel plazas, and entertainment venues, regardless of their proximity to a franchisee's location. They can also sell products under the Marks at locations other than franchised businesses, like grocery stores, and acquire and operate other food service businesses anywhere.
For a prospective franchisee, this means that while they are granted a protected territory, Buns On Fire retains significant rights to operate and expand its brand through other channels and locations, potentially creating competition or impacting the franchisee's market. Franchisees in Maryland should note that updates in Item 23 indicate that the waiver, release, and other provisions of paragraph 1.6 are not intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.