Can Buns On Fire withhold approval of a franchisee's site selection?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
r 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.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the franchisor retains the right to approve or disapprove a franchisee's site selection. Specifically, Article 1.2 states that the franchisee must select a location subject to the Franchisor's approval within 90 days of the agreement's effective date. This means that while the franchisee is responsible for finding a potential site, Buns On Fire has the final say in whether that location is suitable for a franchise.
This approval process is a standard practice in franchising, as the location of a Buns On Fire restaurant can significantly impact its success. The franchisor's approval ensures that the site meets certain criteria that align with the brand's standards and market strategy. These criteria may include factors such as visibility, accessibility, traffic patterns, demographics, and proximity to other businesses.
Furthermore, Article 2.1(i) reinforces the franchisor's control over the premises by stating that the franchisee must operate from an approved location within the Protected Territory, and acquire or lease the premises within 90 days of the agreement. Buns On Fire also has the right to require the franchisee to execute a Site Addendum Agreement or conditionally assign the lease to the franchisor. This level of control allows Buns On Fire to maintain consistency and protect its brand image across all franchise locations.
For a prospective franchisee, this means that site selection is a collaborative process with Buns On Fire. While the franchisee has the responsibility to find a location, they must work closely with the franchisor to ensure that the site meets the necessary requirements for approval. This also means that the franchisee should factor in the possibility that their initial site selection may be rejected and be prepared to identify alternative locations within the specified timeframe.