Under what condition will the continuation of business relations between a franchisee and Buns On Fire after the agreement's termination or expiration be considered a renewal, extension, or continuation of the agreement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
ime this Agreement is executed, Franchisee shall select the location of the Franchised Business, subject to the Franchisor's approval, within ninety (90) days after the effective date of this Agreement.
1.3 No Change of Franchise Location
The franchise location described in Exhibit "A" may not be modified or changed by the Franchisee without Franchisor's prior written approval. The Franchisee must request Franchisor's prior written approval in writing. To modify or change location, the Franchisee must be current in all obligations to Franchisor, whether under this Agreement or any other agreement, and must not be defaulting under this or any other agreement with Franchisor.
In the event that Franchisee's request to modify or change location is approved by the Franchisor, the Franchisee will be required, and must sign, Franchisor's then-current form of the Franchise Agreement. The then-current Franchise Agreement may contain different terms and conditions, for a term that may be equal to the remaining term of this Agreement. Unless we grant you a term that is longer than the remaining term under this Franchise Agreement, you will not be required make an Initial Fr
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Buns On Fire franchise agreement outlines specific conditions regarding the modification of the franchise location. According to Article 1.3, the franchisee cannot modify or change the franchise location described in Exhibit "A" without the franchisor's prior written approval. To obtain this approval, the franchisee must be current in all obligations to the franchisor, whether under the current agreement or any other agreement, and must not be in default under any agreement with the franchisor.
If Buns On Fire approves the franchisee's request to modify or change the location, the franchisee will be required to sign the franchisor's then-current form of the Franchise Agreement. This new agreement may contain different terms and conditions, but the term may be equal to the remaining term of the original agreement.
Importantly, unless Buns On Fire grants a term longer than the remaining term under the original Franchise Agreement, the franchisee will not be required to make an additional Initial Franchise Fee payment for the relocated Franchised Business. However, the franchisee will be required to pay a Relocation Fee of $2,500 to the franchisor upon execution of the new Franchise Agreement. This clause ensures that franchisees relocating their business remain compliant with the franchisor's standards and guidelines while also addressing the financial implications of such a move.