Under what condition is a proposed location for a Buns On Fire franchise considered approved?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
| | H. | | Address for notice to FRANCHISEE shall be at the Restaurant, unless another address is inserted | | here: []. |
ARTICLE I GRANT OF FRANCHISE
1.1 Grant and Protected Territory
Subject to the terms and conditions contained herein, the Franchisor hereby grants to Franchisee a non-exclusive right to operate a "Buns on Fire" restaurant at the location approved by the Franchisor in accordance with the provisions of this Agreement (the "Franchised Business"), and a non-exclusive license to use the Marks in the operation thereof, with all ownership rights in the Marks remaining with Franchisor. Except as otherwise provided in this Agreement, the Franchisor shall not establish nor license anyone other than Franchisee to establish any Franchised Business under the System within the territory specified in Exhibit "A" ("Protected Territory").
1.2 Site Selection Timeframe
Unless an approved location was selected by Franchisee at the time 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 Franchise Fee payment for the relocated Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, a proposed location is considered approved when the Franchisor approves the location. Specifically, unless a location was already selected when the Franchise Agreement was executed, the franchisee has 90 days from the agreement's effective date to select a location, which is subject to Buns On Fire's approval.
This means that prospective Buns On Fire franchisees do not have unilateral authority over site selection. Buns On Fire retains the right to veto a proposed location. This is a fairly typical arrangement in franchising, as the location is critical to the success of the business and impacts the brand's overall image.
Furthermore, the franchise location described in Exhibit "A" cannot be modified or changed by the franchisee without Buns On Fire's prior written approval. To change the location, the franchisee must be current in all obligations to Buns On Fire and not be in default under any agreement. If a location change is approved, the franchisee will be required to sign Buns On Fire's then-current form of the Franchise Agreement and pay a Relocation Fee of $2,500 upon execution of the new Franchise Agreement.