What is the stated purpose of the Franchisee Disclosure Acknowledgment Statement in relation to establishing a Buns On Fire restaurant?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
SMYA Ventures LLC (the "Franchisor") and you are preparing to enter into a Franchise Agreement for the establishment and operation of a Buns on Fire restaurant (the "Franchised Business"). The purpose of this Questionnaire is to make sure you have received the information necessary and have had the opportunity to review and consider such information.
For franchisees and franchises that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington or Wisconsin, this questionnaire is not intended and does not constitute waiver of any claims under any applicable state franchise law, including fraud in the inducement; or a disclaimer of any reliance on any statement made by any person acting on behalf of the Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the Franchisee Disclosure Acknowledgment Statement is designed to ensure that prospective franchisees have received and had the opportunity to review all necessary information before entering into a Franchise Agreement. SMYA Ventures LLC, the franchisor for Buns On Fire, uses this statement to confirm that franchisees are well-informed about the franchise opportunity.
However, the FDD also clarifies that for franchisees in certain states (California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington or Wisconsin), this questionnaire does not waive any claims under state franchise law, including claims related to fraud or reliance on statements made by the franchisor. This ensures that franchisees in these states retain their legal rights and protections even after signing the acknowledgment.
In essence, the Franchisee Disclosure Acknowledgment Statement serves as a formal confirmation that the franchisee has been provided with the necessary information to make an informed decision, while also protecting the franchisee's rights under applicable state laws.