Can Buns On Fire suspend or terminate fee reductions 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:
- (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);
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 or terminate fee reductions as a remedy if the franchisee violates the franchise agreement. Specifically, if events occur that give Buns On Fire the right to terminate the agreement, Buns On Fire can choose to take several actions without actually terminating the agreement.
This includes the ability to suspend or terminate any temporary or permanent fee reductions that Buns On Fire and the franchisee might have agreed to. This applies whether the fee reduction was part of a policy, an amendment to the agreement, or otherwise.
This provision gives Buns On Fire significant latitude in responding to a franchisee's non-compliance without resorting to full termination. It allows Buns On Fire to adjust the financial terms of the agreement as a corrective measure, which could impact the franchisee's profitability and cash flow. Prospective franchisees should understand the conditions under which these remedies can be applied and how they might affect their business operations.