Where must the Accepted Location be situated for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee must operate its Business within the specific Territory as identified in this Section VI. Franchisee may not open a Business at any other location other than the Accepted Location that has been set forth in this Agreement or made a part hereof by an addendum attached to this Agreement. Franchisee
Franchisee is not granted an exclusive territory. The Franchisee is granted a Territory that is a protected territory as defined in this Agreement. The location of the Franchise Business shall be as the parties agree, usually about a radius of three (3) miles. If the actual Franchise Business address has not yet been chosen by the time the parties sign the Franchise Agreement they shall agree upon a temporary territory. The final Territory will be defined from the actual Business address once chosen.
The exact "Accepted Location" for the Business is:
The protected Territory for a Business that is not in a Non-Traditional Location will be: ________miles driven from any direction of the Business.
The Franchisee shall maintain the Business in accordance with the provisions and requirements of Section 12 hereof, and must secure a lease that has been approved by us (as described in Section 12.S) within eighteen (18) months of the execution of this Franchise Agreement ("Effective Date") and open the Business for operation (the "Opening") within twenty-four (24) months from the date of execution of this Franchise Agreement. Upon Franchisee's failure to meet either of the above requirements; then we may, at our sole discretion, terminate the Franchise and this Agreement and retain all fees paid by Franchisee, without breach of this Agreement by us as specified in Section 23.C. The Opening requires that Franchisee has qualified for and has obtained all necessary licenses and permits needed to sell Products and perform Services. We may, in our discretion, grant Franchisee one sixty (60) day extension past the allotted time within which to secure a lease and/or open the Business.
During the term of this Agreement, the Accepted Location shall be used exclusively for the purpose of operating a Franchised Business and shall be located within the Territory.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the Accepted Location for a Burros Fries franchise must be within the Territory that is assigned to the franchisee. The franchise agreement specifies that the franchisee must operate the business within this specific Territory and cannot open a business at any other location other than the Accepted Location, which is detailed in the agreement or an addendum.
The Territory itself is determined by Burros Fries based on factors such as population, demographics, traffic patterns, proximity to major roads, parking, competition, business potential, site availability, square footage, and rent. The Territory's boundaries are defined by topographical features like streets, highways, rivers, and mountains. The size and boundaries of the protected Territory are determined by Burros Fries.
For a standard Burros Fries location (i.e., not a non-traditional location), the protected Territory typically extends approximately three miles in any direction from the business. The exact Accepted Location is agreed upon by both parties. If the location isn't finalized when the Franchise Agreement is signed, a temporary territory is established until the final business address is chosen and the territory is then defined from that address. The franchisee must secure a lease approved by Burros Fries within 18 months of the Franchise Agreement's effective date and open the business within 24 months.