What specific article of the Buns On Fire Franchise Agreement addresses indemnification?
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, Article 20.6 of the Franchise Agreement addresses indemnification. Specifically, it states that the franchisee agrees to indemnify and hold Buns On Fire harmless if the franchisee fails to comply with the requirements to provide written notice to Buns On Fire regarding any offer to buy the franchisee's business. This notice must be given within 15 days of the receipt of the offer.
In practical terms, this means that if a franchisee receives an offer to purchase their Buns On Fire franchise and does not promptly notify the franchisor as required, the franchisee could be held liable for any losses, damages, or legal expenses that Buns On Fire incurs as a result of this failure. This is a standard clause in franchise agreements, designed to protect the franchisor's interests and ensure compliance with franchise disclosure laws.
It is important for prospective Buns On Fire franchisees to understand this obligation and ensure they have procedures in place to comply with the notification requirements. Failure to do so could result in unexpected financial liabilities. Franchisees should consult with a legal professional to fully understand their obligations under the Franchise Agreement and to ensure they are adequately protected.