Is Burros Fries' acceptance of a site a guarantee of profitability at that location?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
not received our written approval. We must accept the site if we feel in our total discretion that it meets or exceeds our standards, but our acceptance does not ensure that your Business will be profitable at the approved location. If we do not approve the site, you will be given a second opportunity to locate a site. If we do not approve the second site, we may terminate the Franchise.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–38)
What This Means (2024 FDD)
According to Burros Fries' 2024 Franchise Disclosure Document, the franchisor's acceptance of a site does not guarantee profitability for the franchisee. While Burros Fries provides written guidelines for site selection and requires franchisees to obtain written approval before signing a lease or investing money in a site, their acceptance is based on their discretion that the site meets or exceeds their standards. These standards include factors such as population density, demographics, traffic patterns, convenience, adequate parking, safety, zoning ordinances, neighborhood, and physical characteristics of the premises.
Burros Fries explicitly states that their acceptance of a site does not ensure the business will be profitable at that location. The FDD clarifies that neither Burros Fries nor its employees have special expertise in selecting sites, and they make no representations that the business will be profitable or successful simply by being located at the approved site. Any approval given by Burros Fries is only intended to indicate that the proposed site meets their minimum criteria based on their general business experience.
This means that while Burros Fries assesses potential locations based on certain criteria, the ultimate responsibility for the financial success of the franchise lies with the franchisee. Prospective franchisees should conduct their own thorough market research and due diligence to determine the viability of a location before committing to a lease. Franchisees should not rely solely on Burros Fries' approval as a guarantee of profitability.