After the additional 90-day period, what must a Burros Fries franchisee do to propose another sale or transfer?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee does not complete the sale to the proposed buyer within ninety (90) days after we notify Franchisee that we do not intend to exercise our right of first refusal (whether or not the First Notice Deadline or the Due Diligence Deadline has expired), or if there is a material change in the terms of the sale (which Franchisee must communicate promptly to us), we will have an additional right to accept the sale during the thirty (30) day period following either the expiration of that ninety (90) day period or our receipt of notice of the material change(s) in the sale's terms, either on the terms originally offered or the
modified terms, at our option. If Franchisee does not complete the sale to the proposed buyer within an additional ninety (90) days, then any proposed sale or transfer thereafter once again must comply with all of the provisions of Sections 22.B, 22.C and 22.E, as though there had not previously been a proposed sale or transfer.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, if a franchisee does not complete the sale to a proposed buyer within 90 days after Burros Fries informs the franchisee that they will not exercise their right of first refusal, or if there is a material change in the terms of the sale, Burros Fries has an additional 30-day period to accept the sale. If the sale is still not completed within an additional 90 days after that, the franchisee must then comply with all the provisions of Sections 22.B, 22.C, and 22.E as if there had not been a previously proposed sale or transfer.
In practical terms, this means the franchisee must restart the entire transfer process from the beginning. This includes notifying Burros Fries of the intention to sell, providing all required documentation, and allowing Burros Fries the right of first refusal again. The franchisee cannot simply pick up where they left off in the previous attempt.
This requirement ensures that Burros Fries maintains control over who becomes a franchisee and that the terms of the sale are acceptable to them. It also protects Burros Fries from being presented with significantly altered sale terms without having the opportunity to reassess the situation. Franchisees should be aware of these time constraints and the need to restart the process if a sale is not completed within the specified timeframes to avoid delays or complications in transferring their franchise.