Is selling unapproved items a breach of the Buns On Fire Franchise Agreement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
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Franchisee agrees to maintain a high moral and ethical standard in the operation and conduct of the Franchised Business so as to create and maintain goodwill among the public for the name "Buns on Fire" and supervise and evaluate the performance of its staff to ensure that each render competent, efficient and quality service to the general public.
8.6 Approved Products and Services
Franchisee recognizes that it is essential to the proper operation of the Franchised Business, and to the preservation and promotion of its reputation and acceptance by the public at large, that standards of quality be maintained. Franchisee therefore agrees, as part of the consideration for this Agreement, that Franchisee will at all times sell or offer for sale to retail customers, only the Products as shall meet the reasonable specifications and standards from time to time approved in writing by Franchisor, as permitted by law, and as permitted under the lease. In furtherance thereof, Franchisee shall be required to purchase from Franchisor or its designee any new Products, which may be introduced from time to time by Franchisor and be required to offer same to the consuming public for its consumption and shall offer any method of delivery, such as in-store, and delivery, as Franchisor shall designate in the Confidential Operations Manual.
8.7 Approved Suppliers
(i.) In connection with the operation of the Franchised Business, the Franchisee is required to purchase certain items of equipment, if applicable, and also certain products and food supplies, containers, packaging supplies, paper goods and other product service items for the preparation
and service of the Products from sources designated by the Franchisor. Franchisee's obligations under this shall be satisfied so long as Franchisee equips the Franchised Business and keeps it maintained in accordance with Franchisor's strict specifications and standards for the Franchised Business.
- (ii.) In the event that Franchisee proposes to purchase any brand, type, and/or model of products, supplies, or services which are not then approved by Franchisor, Franchisee will first notify Franchisor and will submit to Franchisor, on Franchisor's request, sufficient written specifications, photographs, drawings, samples, and/or other information for a determination by Franchisor of whether the brand, type, and/or model of products, supplies, or services complies with Franchisor's specifications and standards, which determination will be made and communicated to Franchisee in writing within sixty (60) days after receipt of the necessary samples and information.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 40–41)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, franchisees must adhere to strict standards regarding the products they sell. Specifically, Section 8.6 states that franchisees must only sell products that meet the specifications and standards approved in writing by Buns On Fire. Furthermore, franchisees are required to purchase new products introduced by Buns On Fire and offer them to customers through designated methods like in-store or delivery. This requirement is crucial for maintaining the brand's reputation and public acceptance.
Section 8.7(i) further clarifies that franchisees must purchase specific equipment, food supplies, containers, packaging, and other product service items from sources designated by Buns On Fire. This ensures that the franchise maintains strict specifications and standards. Section 8.4 allows Buns On Fire to obtain samples of products and supplies from the franchised business for testing, ensuring compliance with the franchisor's standards.
Section 24.11 of the Franchise Agreement, as amended, indicates that non-compliance or unauthorized use of the Buns On Fire System or Proprietary Marks during or after the agreement period entitles Buns On Fire to seek temporary and permanent injunctive relief against the franchisee. This means that if a franchisee sells unapproved items, it would be considered a breach of the agreement, potentially leading to legal action.
Therefore, selling unapproved items would indeed constitute a breach of the Buns On Fire Franchise Agreement, potentially resulting in injunctive relief and other legal remedies available to Buns On Fire. Prospective franchisees should be aware of these requirements and ensure they fully comply with the approved product and supplier standards to avoid any legal repercussions.