Under what conditions can the License Agreement for Buns On Fire be terminated?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
In the License Agreement, Licensor authorizes us to use the Marks in connection with the offer, sale, and support of Franchise Businesses. The License Agreement does not contain any significant limitations on our right to use or license the Marks to you and may be terminated unilaterally by either party upon a material breach of the License Agreement. Upon termination of the License Agreement, we must immediately discontinue the use of the Marks, and no arrangement regarding the assignment of all of our franchise agreements licensing the use of the Marks to Licensor and Licensor's assumption of all obligations under such agreements arising from and after their assignment is contained in the License Agreement.
Source: Item 13 — TRADEMARKS (FDD pages 35–37)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, the License Agreement between Buns On Fire and its licensor, SMYA Ventures LLC, can be terminated unilaterally by either party if there is a material breach of the License Agreement. This License Agreement allows Buns On Fire to use the trademarks in connection with offering, selling, and supporting franchise businesses.
This means that if either Buns On Fire or SMYA Ventures LLC fails to meet a critical obligation outlined in their License Agreement, the other party has the right to terminate the agreement. A material breach is a significant failure to perform a contractual duty, such as failing to make payments or violating key terms of the agreement.
It is important to note that the FDD states that upon termination of the License Agreement, Buns On Fire must immediately discontinue the use of the Marks. The FDD also clarifies that there are no arrangements in place for the assignment of franchise agreements to the Licensor or the Licensor's assumption of obligations if the License Agreement is terminated. This could have significant implications for franchisees, as their right to use the Buns On Fire trademarks is dependent on the License Agreement remaining in effect. Prospective franchisees should seek clarification from Buns On Fire regarding the potential impact of the License Agreement's termination on their franchise operations and the security of their investment.