Is there an exception to the restriction on the assignee being in the same business as Buns On Fire?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii.) Franchisee agrees that Franchisor has the right, now or in the future, to purchase, merge, acquire or affiliate with an existing competitive or non-competitive franchise network, chain or any other business, regardless of the location of that chain's or business' facilities, and to operate, franchise or license those businesses and/or facilities as "Buns on Fire" operating under the Marks or any other marks following Franchisor's purchase, merger, acquisition or affiliation, regardless of the location of these facilities, except that if such businesses are located within any Protected Territory granted to Franchisee, those businesses will not change their names to "Buns on Fire".
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Buns on Fire retains the right to acquire or affiliate with businesses, even those that are competitive, with one exception. Buns on Fire can purchase, merge, acquire, or affiliate with any existing competitive or non-competitive franchise network, chain, or other business, regardless of location. Following such actions, Buns on Fire can operate, franchise, or license these businesses under the Buns on Fire brand or other brands.
The key exception to this is that if these acquired businesses are located within a franchisee's Protected Territory, they cannot be rebranded as "Buns on Fire". This protects the franchisee's exclusive rights within their territory, preventing direct competition from businesses rebranded as Buns on Fire.
This clause ensures that Buns on Fire can expand its business through acquisitions and mergers without necessarily being restricted by existing franchisees' territories, as long as the acquired businesses within those territories do not adopt the Buns on Fire name. For a prospective franchisee, this means that while Buns on Fire can acquire competitors, those competitors cannot operate as Buns on Fire within their protected territory.