What must a transferee of the Buns On Fire franchise agreement rights agree to in writing?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i.) Franchisor shall have the right, without the need for Franchisee's consent, to assign, transfer or sell its rights under this Agreement to any person, partnership, corporation or other legal entity provided that the transferee agrees in writing to assume all obligations undertaken by Franchisor herein and Franchisee receives a statement from both Franchisor and its transferee to that effect.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, if the Franchisor decides to transfer its rights under the Franchise Agreement, the transferee must agree in writing to assume all obligations undertaken by Buns On Fire in the original agreement. Additionally, Buns On Fire must provide the franchisee with a statement from both Buns On Fire and its transferee confirming this assumption of obligations.
This requirement ensures that the franchisee's rights and the franchisor's obligations remain intact even if the ownership or management of Buns On Fire changes. The written agreement from the transferee provides a legal basis for the franchisee to hold the new entity accountable for the promises and responsibilities outlined in the original franchise agreement.
For a prospective Buns On Fire franchisee, this clause offers some protection in the event of a transfer. It ensures that the new franchisor is legally bound to uphold the terms of the existing franchise agreement. However, it is important for franchisees to carefully review the terms of the transfer agreement and seek legal counsel to fully understand their rights and obligations in such a situation.
This is a fairly standard clause in franchise agreements, as it protects both the franchisor's ability to transfer the business and the franchisee's investment in their Buns On Fire location. Franchisees should pay close attention to these clauses to understand their rights and obligations should Buns On Fire be sold or otherwise transferred.