Under what condition is a Buns On Fire franchisee not obligated to pay a non-compliance fine?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
ocation, 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 Buns On Fire Franchise Disclosure Document, there is no mention of non-compliance fines. The document does mention non-compliance in the context of unauthorized use of the Buns on Fire system or proprietary marks, stating that the franchisor is entitled to seek injunctive relief in such cases.
The FDD outlines various fees, including the initial franchise fee and a relocation fee of $2,500 under specific circumstances, such as when a franchisee requests to modify or change the location of their franchise and the franchisor approves it. In this case, the franchisee will be required to sign the franchisor's then-current form of the Franchise Agreement. Unless the franchisor grants a term longer than the remaining term under the current Franchise Agreement, the franchisee will not be required to make an Initial Franchise Fee payment for the relocated Franchised Business.
However, the excerpts provided do not detail any specific instances where a franchisee would be exempt from paying a non-compliance fine. A prospective franchisee should ask the franchisor directly about what constitutes non-compliance, the fines associated with non-compliance, and the conditions under which those fines might be waived or reduced.