Can Buns On Fire suspend temporary fee reductions we might have agreed to?
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 Buns On Fire's 2025 Franchise Disclosure Document, under certain conditions, Buns On Fire has the right to suspend temporary or permanent fee reductions that might have been agreed upon with a franchisee. This ability is not unconditional; it arises if certain events occur that give Buns On Fire the right to terminate the Franchise Agreement.
Specifically, if such events occur, Buns On Fire may elect to take several actions without actually terminating the agreement. These actions include temporarily or permanently reducing the size of the protected area, suspending protected rights within that area, removing information about the franchised business from the system website, stopping participation in marketing programs, suspending participation in Marketing Fund benefits, and suspending other services provided to the franchisee. Critically, it also includes the ability to suspend or terminate any temporary or permanent fee reductions that Buns On Fire and the franchisee might have previously agreed to.
This provision gives Buns On Fire considerable latitude in managing the franchise relationship if issues arise that would otherwise justify termination. For a prospective franchisee, this means that any negotiated fee reductions are not guaranteed and can be revoked if the franchisee fails to meet the obligations outlined in the franchise agreement. It is important to understand what events could trigger a termination right for Buns On Fire, as those same events could lead to a suspension of previously agreed-upon fee reductions.