What does the written consent from Buns On Fire regarding a franchisee's securities offering NOT imply?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Written consent of the Franchisor pursuant to this Section 20.8 shall not imply or constitute the approval of the Franchisor with respect to the method of financing, the offering literature submitted to the Franchisor or any other aspect of the offering. No information respecting the Franchisor or any of its affiliates shall be included in any securities disclosure document, unless such information has been furnished by the Franchisor, in writing, pursuant to the written request of the Franchisee, in which the Franchisee states the specific purpose for which the information is to be used. Should the Franchisor, in its sole discretion, object to any reference to the Franchisor or any of its affiliates or any of their businesses in such offering literature or prospectus, such literature or prospectus shall not be used unless and until the objections of the Franchisor are withdrawn. The Franchisor assumes no responsibility for the offering whatsoever.
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 attempts to raise funds through the sale of securities, they must first submit any written information to Buns On Fire before including it in any registration statement or prospectus. The franchisee must also obtain written consent from Buns On Fire regarding the financing method before offering or selling any securities. For each proposed offering, the franchisee must pay Buns On Fire a non-refundable fee between $5,000 and $50,000 to cover the franchisor's costs associated with reviewing the offering, including legal and accounting fees.
However, Buns On Fire's written consent does not imply approval of the financing method, the offering literature, or any other aspect of the offering. The franchisee cannot include information about Buns On Fire or its affiliates in any securities disclosure document unless Buns On Fire has furnished the information in writing at the franchisee's request, specifying the purpose for which the information will be used. If Buns On Fire objects to any reference to the franchisor or its affiliates in the offering literature or prospectus, the literature or prospectus cannot be used until Buns On Fire withdraws its objections.
In essence, while Buns On Fire requires franchisees to seek consent and pay a fee for securities offerings, this consent is limited to ensuring brand protection and compliance. It does not constitute an endorsement or guarantee of the offering's viability or legality. The responsibility for the offering remains solely with the franchisee, and Buns On Fire assumes no responsibility for the offering whatsoever.