Under what circumstances, despite sections 17.2(a) and (b), will the Buns On Fire agreement terminate?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE II DEVELOPMENT AND OPENING OF THE FRANCHISED BUSINESS
2.1 Franchised Business Premises
- (i.) Franchisee shall operate the Franchised Business from a location in the Protected Territory. Franchisee shall acquire or lease within ninety (90) days from the date of execution of this Agreement, an approved premises for the Franchised Business. The Franchisor shall have the right in its sole discretion, to require:
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- Franchisee to execute a Site Addendum Agreement in the form attached hereto;
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- Franchisee to conditionally assign such lease to the Franchisor (with the consent of the lessor, if required) by conditional lease assignment provisions in form annexed to Franchise Agreement as Exhibit "C" in order to secure performance of any and all of Franchisee's liabilities and obligations to the Franchisor; or
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3. That such lease contains substantially the following provisions:
- a. "Anything contained in this lease to the contrary notwithstanding, Lessor agrees that without its consent, this lease and the right, title and interest of the Lessee hereunder may be assigned by the Lessee to SMYA Ventures LLC, an Illinois limited liability company or its designee."
- b. "Lessee hereby agrees that Lessor may, upon the written request of Buns on Fire, disclose to Buns on Fire all reports, information or data in Lessor's possession with respect to sales made in, upon, or from the leased premises."
- c. "Lessor shall give written notice to Buns on Fire (concurrently with the giving of such notice to Lessee) of any default by Lessee under the lease and Buns on Fire shall have the right, in its sole discretion, to cure any such default. Such notice shall be sent to Buns on Fire at its headquarters, or such other address as Buns on Fire may specify in writing to Lessor."
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
Based on the 2025 Buns On Fire Franchise Disclosure Document, the agreement can terminate under conditions described in Article 2.1 regarding the Franchised Business Premises. Specifically, the franchisor has the right to require the franchisee to execute a Site Addendum Agreement or conditionally assign the lease to the franchisor to secure the franchisee's liabilities and obligations. The lease should contain provisions that allow assignment to SMYA Ventures LLC or its designee without the lessor's consent, permit the lessor to disclose sales information to Buns On Fire, and require the lessor to notify Buns On Fire of any franchisee defaults, giving Buns On Fire the right to cure such defaults.
These lease provisions are critical because they give Buns On Fire significant control over the physical location of the franchise. If a franchisee fails to meet the obligations outlined in the lease, or if the lease does not contain the required provisions, Buns On Fire can step in to protect its interests. This could ultimately lead to the termination of the franchise agreement if the franchisee does not comply with these requirements.
For a prospective Buns On Fire franchisee, this means carefully reviewing the lease agreement and understanding all obligations related to the premises. It is important to ensure that the lease contains the provisions required by Buns On Fire and to maintain compliance with all lease terms to avoid potential termination of the franchise agreement. Furthermore, the franchisee should be aware that Buns On Fire has the right to cure any defaults under the lease, which could have financial implications for the franchisee.