Under what condition is a Buns On Fire franchisee required to abide by modifications to the System?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee understands and agrees that the System must not remain static if it is to meet, without limitation, presently unforeseen changes in technology, competitive circumstances, demographics, populations, consumer trends, societal trends, other market variables and the needs of customers, and to best serve the interests of Franchisor, Franchisee and all other franchisees. Accordingly, Franchisee expressly understands and agrees that Franchisor may from time to time change the components of the System, including, but not limited to, altering the products, programs, services, methods, standards, forms, policies and procedures of that System; abandoning the System altogether in favor of another system in connection with a merger, acquisition, other business combination or for other reasons; adding to, deleting
from or modifying those programs and services which the Franchised Business is authorized to offer; modifying or substituting entirely the building, premises, equipment, signage, trade dress, décor, color schemes and uniform specifications and all other unit construction, design, appearance and operation attributes which Franchisee is required to observe hereunder; and changing, improving or modifying the Marks. Subject to the other provisions of this Agreement, including the restrictions contained in Section 8.3, Franchisee expressly agrees to abide by any such modifications, changes, additions, deletions and alterations, provided, however, that such changes are system-wide in nature do not materially and unreasonably increase Franchisee's economic obligations hereunder.
Franchisee shall accept, use and effectuate any such changes or modifications to, or substitution of, the System as if they were part of the System at the time that this Agreement was executed.
Except as provided herein, Franchisor shall not be liable to Franchisee for any expenses, losses or damages sustained by Franchisee as a result of any of the modifications contemplated hereby. Franchisee hereby covenants not to commence or join in any litigation or other proceeding against Franchisor or any third party complaining of any such modifications or seeking expenses, losses or damages caused thereby. Finally, Franchisee expressly waives any claims, demands or damages arising from or related to the foregoing activities including, without limitation, any claim of breach of contract, breach of fiduciary duty, fraud, and/or breach of the implied covenant of good faith and fair dealing.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, franchisees must adhere to modifications, changes, additions, deletions, and alterations to the Buns On Fire system under specific conditions. These modifications can include changes to products, programs, services, methods, standards, forms, policies, and procedures. They may also involve altering or substituting the building, premises, equipment, signage, trade dress, décor, color schemes, uniform specifications, and even the Marks themselves.
However, these changes must be system-wide in nature and cannot materially and unreasonably increase the franchisee's economic obligations. This means that the modifications should apply to all Buns On Fire franchises, not just a select few, and the costs associated with implementing these changes should not place an undue financial burden on the franchisee.
The franchisee is expected to accept, use, and implement these changes as if they were part of the original agreement. Buns On Fire is not liable for any expenses, losses, or damages the franchisee incurs as a result of these modifications, and the franchisee waives the right to sue Buns On Fire over these changes. This clause highlights the importance of carefully considering the potential for future changes and their associated costs before investing in a Buns On Fire franchise.