What specific activities are Buns On Fire franchisees prohibited from doing with a Competitive Business after the termination of the Franchise Agreement?

According to the 2025 Buns On Fire Franchise Disclosure Document, franchisees are subject to post-term covenants not to compete. For two years after the termination, expiration, or non-renewal of the Franchise Agreement, franchisees are restricted from certain activities related to competitive businesses.

Specifically, franchisees cannot directly or indirectly own, maintain, engage in, participate in, or have any interest in the operation of a fast-casual restaurant, food service business, or any enterprise selling Halal foods, middle-eastern cuisine, or similar food products. This includes various formats such as walk-in or carry-out restaurants, food carts, or vending machines. The agreement defines such ventures as a "Competitive Business."

This restriction does not prevent a former Buns On Fire franchisee from owning additional Buns On Fire restaurants. This post-term covenant aims to protect Buns On Fire's market share and trade secrets by preventing former franchisees from using their knowledge of the Buns On Fire system to benefit a competing business within a defined period after their franchise agreement ends.