Under what circumstances will a Buns On Fire franchisee be subject to a non-compliance fine?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
The third and fourth sentences of Section 24.11 of the Franchise Agreement is amended to read as follows:
"You therefore agree that if you engage in this non-compliance, or unauthorized and/or improper use of The Buns on Fire System or Proprietary Marks, during or after the period of this Agreement, we will be entitled to seek both temporary and permanent injunctive relief against you from any court of competent jurisdiction, in addition to all other remedies which we may have at law. You consent to the seeking of these temporary and permanent injunctions."
In the event of a relocation of the Franchised Business, Franchisee shall promptly remove from the first Franchised Business premises, and discontinue using for any purposes, any and all signs, fixtures, furniture, posters, furnishings, equipment, menus, advertising materials, stationery supplies, forms and other articles which display any of the Marks or any distinctive features or designs associated with Buns on Fire. Furthermore, Franchisee shall, at Franchisee's expense, immediately make such modifications or alterations as may be necessary to distinguish the first Franchised Business so clearly from its former appearance and from other Buns on Fire restaurants and to prevent any possibility of confusion therewith by the public (including, without limitation, removal of all distinctive physical and structural features identifying Buns on Fire and removal of all distinctive signs and emblems). Franchisee shall, at Franchisee's expense, make such specific additional changes as the Franchisor may reasonably request for this purpose. If Franchisee fails to initiate immediately or complete such alterations within such period of time as the Franchisor deems appropriate, Franchisee agrees that the Franchisor or its designated agents may enter the premises of the first Franchised Business and adjacent areas at any time to make such alterations, at Franchisee's sole risk and expense, without responsibility for any actual or consequential damages to the property of Franchisee or others, and without liability for trespass or other tort or criminal act. Franchisee expressly acknowledges that Franchisee's failure to make such alterations will cause irreparable injury to the Franchisor and consents to entry, at Franchisee's expense, of an ex-parte order by a court of competent jurisdiction authorizing the Franchisor or its agents to take such action, if the Franchisor seeks such an order.
Franchisee must submit to Franchisor, for its approval, all materials to be used for local advertising, unless they have been approved before or they consist only of materials Franchisor provided. All materials containing the Marks must include the designation trademark ™, registered trademark ®, service mark SM, copyright ©, as applicable, or any other designation Franchisor specifies. If Franchisee does not receive written or oral disapproval of any materials submitted within fifteen (15) days from the date Franchisor receives the materials, the materials are disapproved. Any materials submitted to Franchisor for its approval will become Franchisor's property, and there will be no restriction on Franchisor's use of such materials. Franchisor may require Franchisee to withdraw and/or discontinue the use of any promotional materials or advertising, even if previously approved. Franchisor must make this requirement in writing, and Franchisee has five (5) days after receipt of Franchisor's notice to withdraw and/or discontinue use of the materials or advertising.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
The 2025 Buns On Fire Franchise Disclosure Document outlines specific instances where a franchisee's actions or inactions can lead to legal repercussions, though it does not explicitly mention "non-compliance fines." Instead, it focuses on injunctive relief and the franchisor's right to protect its brand and system.
Specifically, if a Buns On Fire franchisee engages in non-compliance or unauthorized/improper use of the Buns On Fire system or proprietary marks, the franchisor is entitled to seek both temporary and permanent injunctive relief from a court. This means Buns On Fire can ask a court to order the franchisee to stop the non-compliant behavior. The franchisee consents to the seeking of these injunctions.
Additionally, if a Buns On Fire franchisee relocates their business, they must promptly remove all Buns On Fire branding from the original location. Failure to do so allows Buns On Fire to enter the premises and make the alterations themselves at the franchisee's expense. The franchisee acknowledges that failure to make these alterations will cause irreparable injury to Buns On Fire and consents to an ex-parte court order allowing Buns On Fire to take such action. This could involve costs for the franchisee related to the de-identification of the original location and potential legal fees if Buns On Fire seeks a court order.
Finally, a Buns On Fire franchisee must submit all local advertising materials to the franchisor for approval, and the franchisor can require the franchisee to withdraw or discontinue the use of any promotional materials or advertising, even if previously approved. While the document doesn't mention a fine for non-compliance with advertising standards, the franchisor has the right to demand the franchisee stop using the unapproved materials. Failure to comply could potentially lead to further action, though the specifics of such action are not detailed here.