factual

Under what conditions would a Buns On Fire franchisee's continued operation after the agreement's expiration be considered a month-to-month extension?

Buns_On_Fire Franchise · 2025 FDD

Answer from 2025 FDD Document

In the event Franchisee shall continue to operate Franchisee's Franchised Business following the expiration, termination or non-renewal of this Agreement for any reason, with the express or implied consent of Franchisor, such continuation shall be construed to be an extension of the term hereof only from month-to-month, terminable by either party on no more than thirty (30) days' notice to the other party and otherwise in accordance with all of the provisions of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 49–200)

What This Means (2025 FDD)

According to the 2025 Buns On Fire Franchise Disclosure Document, if a franchisee continues to operate their Buns On Fire business after the expiration, termination, or non-renewal of the franchise agreement, and does so with either the express or implied consent of Buns On Fire, the continuation of operations will be considered a month-to-month extension of the original agreement.

This month-to-month extension is terminable by either the franchisee or Buns On Fire with no more than thirty (30) days' notice to the other party. Furthermore, this extension is subject to all other provisions outlined in the original franchise agreement. This means that all the original terms and conditions, such as royalty fees, operational standards, and adherence to the Buns On Fire system, remain in effect during the month-to-month extension.

This clause protects Buns On Fire by ensuring that if a franchisee continues operations without a formal renewal, the franchisor retains control and can terminate the arrangement relatively quickly. For the franchisee, it provides a short-term option to continue operating, but it comes with the risk of termination on short notice and without the security of a long-term agreement. It is important for franchisees to actively seek renewal or negotiate a new agreement well before the expiration of the original term to avoid this uncertain situation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.