Can Buns On Fire suspend services provided to the franchisee under any agreement as a remedy?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
If any events occur which give Franchisor the right to terminate this Agreement, Franchisor may, at its sole election and upon delivery of written notice to Franchisee, take any or all of the following actions without terminating this Agreement:
- (i.) temporarily or permanently reduce the size of the Protected Area or temporarily or permanently suspend your protected rights within the Protected Area;
- (ii.) temporarily remove information concerning the Franchised Business from the system website and/or stop Franchisee or the Franchised Business' participation in any other programs or benefits offered on or through any of Franchisor's marketing efforts;
- (iii.) suspend Franchisee's right to participate in one or more programs or benefits that the Marketing Fund provides;
- (iv.) suspend any other services that Franchisor or Franchisor's affiliate provides to Franchisee under this Agreement or any other agreement;
- (v.) suspend or terminate any temporary or permanent fee reductions to which Franchisor and Franchisee might have agreed (whether as a policy, in an amendment to this Agreement, or otherwise);
- (vi.) suspend Franchisor's performance of, or compliance with, any of Franchisor's obligations to you under this Agreement or other agreements;
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Buns On Fire has the right to suspend services provided to the franchisee under certain conditions. Specifically, if events occur that would give Buns On Fire the right to terminate the Franchise Agreement, Buns On Fire can choose to take actions without actually terminating the agreement.
This includes the ability to temporarily or permanently reduce the size of the franchisee's protected area, or suspend the franchisee's protected rights within that area. Buns On Fire can also temporarily remove information about the franchised business from the system website, stop the franchisee's participation in marketing programs, and suspend the franchisee's right to participate in programs or benefits offered through the Marketing Fund.
Critically, Buns On Fire can suspend any other services that it or its affiliates provide to the franchisee under the Franchise Agreement or any other agreement. They can also suspend or terminate any temporary or permanent fee reductions that were previously agreed upon. Furthermore, Buns On Fire can suspend its own performance of, or compliance with, any obligations to the franchisee under the Franchise Agreement or other agreements. This provides Buns On Fire with significant latitude to modify the support and services a franchisee receives if the franchisee violates the agreement, without going through the full process of terminating the franchise.