How is a 'transfer' defined in the Buns On Fire franchise agreement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
y us; pay liquidated damages. | | j. Assignment of contract by | XX | No restriction on our right to assign. | | franchisor | | | | k. "Transfer" by franchisee— defined | XX | Includes transfer of contract, of assets or any ownership change. | |------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 41–43)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, a 'transfer' by the franchisee is comprehensively defined within the franchise agreement. Specifically, it includes the transfer of the franchise contract itself, the transfer of the assets of the Buns On Fire business, or any change in the ownership structure of the franchise. This broad definition ensures that any significant alteration in control or ownership of the Buns On Fire franchise is subject to the franchisor's review and approval, as detailed elsewhere in the FDD.
This definition is important for prospective franchisees because it clarifies that any attempt to sell the business, transfer the contract to another party, or change who owns the business will be considered a transfer. This means that Buns On Fire has specific rights regarding approval, as well as the right of first refusal.
Buns On Fire maintains the right to approve all transfers, ensuring that any new operator meets their standards and qualifications. The conditions for approval include the transferee meeting Buns On Fire's qualifications, all outstanding amounts being paid, the franchisee signing a general release, the transferee completing training, payment of a transfer fee, and signing the then-current franchise contract. Furthermore, Buns On Fire also retains the right of first refusal, allowing them to match any offer made for the franchise.
In the event of the death or disability of the franchisee, the franchise agreement stipulates that the franchise must be assigned to an approved buyer within 12 months or transferred to an heir or representative. This ensures business continuity and adherence to Buns On Fire's standards even in unforeseen circumstances. These provisions collectively provide Buns On Fire with significant control over who operates their franchises and maintain brand consistency.