What rights does Buns On Fire retain outside of a franchisee's Protected Territory?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
y be altered before the expiration or termination of the Franchise Agreement, without our mutual consent.
Except as expressly limited by the terms of your Franchise Agreement, we and our affiliates retain all rights with respect to franchised businesses, the Proprietary Marks, and any goods and services outside of your Protected Territory, including: (a) to produce, offer and sell and to grant others the right to produce, offer and sell the services and/or goods offered at the Franchise Business and any other goods and services through similar or dissimilar channels of distribution under trade and service marks other than the Proprietary Marks and under any terms; (b) the right to operate or grant others the right to operate a Buns on Fire franchise anywhere regardless of its proximity to your Franchise Business and on terms we deem appropriate; (c) to operate and to grant others the right to operate Buns on Fire Restaurants at Non-Traditional Sites anywhere under any terms and conditions we deem appropriate; and (d) the right to acquire and operate a business operating one or more restaurants and/or other food service businesses located or operated anywhere.
You may sell our proprietary products and related merchandise to retail customers and prospective retail customers who live anywhere but who choose to visit the Franchise Business. You may not engage in any promotional activities or sell our proprietary products or similar products or services, whether directly or indirectly, through or on the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system (collectively, the "Electronic Media"); through catalogs or other mail order devices sent or directed to customers or prospective customers located anywhere;
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Buns On Fire retains significant rights outside a franchisee's protected territory. Specifically, Buns On Fire maintains the right to produce, offer, and sell goods and services similar to those offered at a franchised location through different distribution channels and under different trademarks. This means that Buns On Fire could potentially introduce new products or services through other brands that compete with existing franchisees, without violating the franchise agreement.
Buns On Fire also reserves the right to operate or franchise Buns On Fire locations anywhere, regardless of their proximity to a franchisee's business. This includes the right to operate Buns On Fire restaurants at non-traditional sites such as airports or universities, under terms and conditions that Buns On Fire deems appropriate. Furthermore, Buns On Fire can acquire and operate businesses that run restaurants or other food service businesses anywhere, providing them with considerable flexibility in expanding their operations outside of the franchised network.
In addition to these rights, Buns On Fire and its affiliates can sell products under the Buns On Fire trademarks both within and outside a franchisee's protected territory through various alternative distribution channels, such as the internet, catalog sales, telemarketing, retail stores, and grocery stores. While franchisees are prohibited from using these alternative distribution channels to make sales outside or inside their protected territory, they may still face competition from these channels within their own territory. These stipulations highlight the importance of understanding the competitive landscape and potential market saturation when investing in a Buns On Fire franchise.