Is there a right to cure any of the immediate termination events for a Buns On Fire franchise?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to franchisees governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5 which require, except in certain specified cases, that a franchisee be given ninety (90) days' notice of termination (with sixty (60) days to cure) and one hundred eighty (180) days' notice of non-renewal of the Franchise Agreement, and that consent to the transfer of the franchise not be unreasonably withheld.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the standard agreement does not generally provide a cure period for termination events. However, an addendum for Minnesota franchisees states that Buns On Fire will comply with Minnesota law, which requires that franchisees, except in certain specified cases, be given ninety (90) days' notice of termination with sixty (60) days to cure. This suggests that franchisees in other states may not have the right to cure a termination event unless required by local laws.
For prospective Buns On Fire franchisees, this means that the termination terms can vary significantly based on the state where the franchise is located. In Minnesota, franchisees are legally entitled to a cure period for most termination events, allowing them time to rectify the issue and maintain their franchise agreement. However, in other states, a franchisee might face immediate termination without an opportunity to correct the problem, depending on the specific circumstances and the laws of that state.
It is important for potential franchisees to carefully review Item 17 and any state-specific addenda in the Buns On Fire FDD to understand their rights regarding termination and cure periods. Franchisees should also consult with a legal professional to fully understand their rights and obligations under the franchise agreement and applicable state laws, especially concerning termination and the possibility of curing defaults.