What specific actions by a Buns On Fire franchisee trigger the indemnification obligation?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the requirements of this Article, Franchisee must promptly ("promptly" being herein defined as within fifteen (15) days of receipt of an offer to buy) give Franchisor additional written notice whenever Franchisee has received a bona fide offer from a third party to buy Franchisee's business franchised hereunder. Franchisee must also give Franchisor written notice simultaneously with any offer to sell the Franchised Business made by, for, or on behalf of Franchisee. The purpose of this Subsection is to enable Franchisor to comply with any applicable state or federal franchise disclosure law or rules. Franchisee agrees to indemnify and hold Franchisor harmless for Franchisee's failure to comply with this Subsection.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, a franchisee's failure to provide timely notice to the franchisor regarding a third-party offer to buy the franchise can trigger an indemnification obligation. Specifically, if a franchisee receives a bona fide offer to buy their Buns On Fire business, they must notify the franchisor in writing within fifteen days of receiving the offer. Additionally, the franchisee must provide written notice to the franchisor simultaneously with any offer to sell the franchised business made by, for, or on behalf of the franchisee.
This indemnification requirement means that if the franchisee fails to comply with these notification requirements, they agree to protect Buns On Fire from any claims or losses that arise as a result of this failure. This is to enable Buns On Fire to comply with any applicable state or federal franchise disclosure laws or rules.
This requirement is in place to ensure that Buns On Fire is aware of any potential sales of franchises, allowing them to maintain control over the brand and comply with legal requirements. Franchisees should be diligent in providing these notices to avoid potential liability for any damages incurred by the franchisor due to their non-compliance.