For what sums is the Buns On Fire franchisee still responsible to telephone companies after the transfer?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, Franchisee will remain liable to each and all of the Telephone Companies for the sums Franchisee is obligated to pay such Telephone Companies for obligations Franchisee incurred before the date Franchisor duly accepted the transfer of such Interest, or for any other obligations not subject to the Franchise Agreement or this Telephone Listing Agreement.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, even after the transfer of telephone numbers and listings to the franchisor, the franchisee remains liable to telephone companies for certain financial obligations. Specifically, the franchisee is responsible for paying any sums they were obligated to pay the telephone companies before the date the franchisor formally accepted the transfer of the telephone numbers and listings.
This means that any outstanding bills or charges incurred by the Buns On Fire franchisee prior to the transfer date remain the franchisee's responsibility. This could include charges for telephone services, directory listings, or any other related fees. It is important for franchisees to ensure all accounts with telephone companies are up-to-date and settled before the transfer to avoid any potential financial liabilities.
Furthermore, the franchisee is also liable for any other obligations to the telephone companies that are not directly related to the Franchise Agreement or the Telephone Listing Agreement itself. This could encompass a wide range of potential debts or liabilities that are separate from the franchise relationship. Therefore, a franchisee should carefully review all agreements with telephone companies to understand the full scope of their financial responsibilities, even after the transfer of telephone numbers and listings to Buns On Fire.