What is the title of Item 17 in the Buns On Fire FDD?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
- Item 17, "Renewal, Termination, Transfer and Dispute Resolution," shall be amended by the addition of the following paragraphs at the conclusion of the Item:
The state of Washington has a statute, RCW 19.100.180, which may supersede the license agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the license agreement in your relationship with the franchisor including the areas of termination and renewal of your license.
In any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration, or as determined by the arbitrator.
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, Item 17 is titled "Renewal, Termination, Transfer and Dispute Resolution." This item is crucial for prospective franchisees as it outlines the conditions under which the franchise agreement can be renewed, terminated, or transferred, and how disputes will be resolved.
Specifically, the FDD includes addenda for certain states like Washington, Minnesota, and Rhode Island that modify Item 17. For example, the Washington addendum specifies that state law may supersede the franchise agreement regarding termination and renewal, and it dictates the arbitration site for disputes involving franchises purchased in Washington. The Minnesota addendum states that Buns On Fire will comply with Minnesota law regarding notice of termination and non-renewal, and that consent to transfer cannot be unreasonably withheld.
These state-specific addenda highlight the importance of understanding the legal landscape in the franchisee's specific state. The Rhode Island addendum notes that any provision restricting jurisdiction or venue to a forum outside of Rhode Island, or requiring the application of other state's laws, is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act. Prospective Buns On Fire franchisees should carefully review Item 17 and any state-specific addenda to fully understand their rights and obligations regarding renewal, termination, transfer, and dispute resolution.