Under what circumstances must a Buns On Fire franchisee sign a general release?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT "I" TRAINING COMPLETION AGREEMENT AND RELEASE
The undersigned is a franchisee of SMYA Ventures LLC, an Illinois limited liability company ("Buns on Fire" or "Franchisor"), owner or operator of or an investor in a Buns on Fire franchise, or a manager of a Buns on Fire Restaurant operated by a Buns on Fire franchisee who is commencing training. As part of such training, the undersigned may visit, inspect, train, and work in one or more of the Buns on Fire Restaurants owned or operated by Franchisor, its affiliates, or by one or more Buns on Fire franchisees. As an inducement to cause the owner of such Buns on Fire Restaurant to permit the undersigned to visit, inspect, train and work in such restaurant, THE UNDERSIGNED HEREBY RELEASES, HOLDS HARMLESS, AND AGREES TO DEFEND & INDEMNIFY SMYA VENTURES LLC, THE OWNER(S) OF SUCH RESTAURANT(S), AND THEIR RESPECTIVE SHAREHOLDERS, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, REPRESENTATIVES, AFFILIATES, SUCCESSORS AND ASSIGNS (COLLECTIVELY, THE "RELEASED & INDEMNIFIED PARTIES"), FROM AND AGAINST ANY AND ALL LIABILITY, LOSS, INJURY, DAMAGE, COST AND EXPENSE SUFFERED OR INCURRED BY THE UNDERSIGNED AS A RESULT OF ANY SUCH VISIT, INSPECTION, TRAINING, OR WORK. IT IS ACKNOWLEDGED THAT THE FOREGOING RELEASE AND INDEMNITY IS INTENDED TO BE AS BROAD AND COMPREHENSIVE AS PERMITTED BY LAW, AND INCLUDES LIABILITY, COST, DAMAGE, INJURY, COST, AND EXPENSE SUFFERED AS A RESULT OR PARTLY AS A RESULT OF ANY NEGLIGENCE, ERROR OR OMISSION BY THE RELEASED & INDEMNIFIED PARTIES. The undersigned further represents that he has independently obtained or is covered by adequate insurance to cover the risk of loss or injury. Some states do not allow the limitations on liability set forth above. Accordingly, not all of the limitations set forth in this section may apply to undersigned.
The following language applies to franchises to be located in Maryland or to be granted to Maryland residents: The general release included in this consent and release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, a franchisee, investor, operator, or manager commencing training may be required to sign a Training Completion Agreement and Release. This agreement requires the individual to release and indemnify Buns On Fire, the restaurant owner, and their affiliates from any liability, loss, injury, damage, cost, and expense suffered during the training period. This release is intended to be comprehensive, covering liabilities resulting from negligence or omissions by the released parties. However, the document notes that some states may not allow such broad limitations of liability.
Specifically, the agreement applies when the franchisee or their representative visits, inspects, trains, or works in a Buns On Fire restaurant owned by the franchisor, its affiliates, or another franchisee. In exchange for being allowed access to these restaurants for training purposes, the franchisee agrees to the release. The franchisee also represents that they have adequate insurance coverage to cover any potential losses or injuries incurred during the training.
It is important to note that for franchises located in Maryland or granted to Maryland residents, the general release does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. Similarly, in Indiana, any release executed by a franchisee must not include claims arising under the Indiana Franchise Disclosure Law or the Indiana Deceptive Franchise Practices Act. Therefore, franchisees should carefully review the release and understand its limitations based on their location and applicable state laws.