Can Burros Fries allow franchisees to sell retail items through alternative channels of distribution?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
ipment without our prior written consent.
In addition, you acknowledge that we may, in our discretion, allow you and other franchisees or companyowned businesses to sell retail items through an alternative channel of distribution (such as on the Internet or Websites) provided you adhere to our standards. You acknowledge that this may create competition and you will not receive any compensation from such sales made by other franchisees or company-owned businesses. If we authorize you to sell through alternative channels of distribution, all such items sold must be from your Business. Unless otherwise approved by us in writing, you are not authorized to sell any type of product or retail item on the Internet or in any other media, whether known or hereinafter invented.
You must participate in any gift certificate or gift card program or rewards program we establish. You may not create or issue your own gift certificates or gift cards without our prior written consent.
You must maintain proper permits and licenses to operate the Business and provide products and services in your area. You must not engage in any trade, practice or other activity that is harmful to our goodwill or reflects unfavorably on our reputation, that constitutes deceptive or unfair competition, or that is in violation of any applicable law.
ITEM 17 RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP
This table lists certain important provisions of the Franchise Agreement and related agreements. You should read these provisions in the exhibits attached to this Disclosure Document. "FA" refers to the Franchise Agreement.
| Provision | Franchise Agreement | Summary |
|---|---|---|
| a. Term of the Franchise Agreement. | FA – Section 7.A | FA – Ten (10) years, subject to agreed upon change to match the length of a premises lease. |
| b. Renewal or extension of the term. |
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 45–46)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, Burros Fries has the discretion to allow franchisees to sell retail items through alternative channels of distribution, such as the Internet or websites. However, franchisees must adhere to Burros Fries's standards. This authorization may create competition among franchisees and company-owned businesses, and franchisees will not receive compensation from sales made by others through these alternative channels.
If Burros Fries authorizes a franchisee to sell through alternative channels, all items sold must originate from the franchisee's Burros Fries Business. Unless Burros Fries provides written approval, franchisees are not authorized to sell any type of product or retail item on the Internet or in any other media.
Franchisees can request approval from Burros Fries to offer products, menu items, retail items, and services unique to their area. Burros Fries will respond to such requests within thirty days. However, Burros Fries can revoke approval if the items or services do not adhere to their standards as specified in the Operations Manual. Burros Fries will communicate approvals, disapprovals, or revocations in writing, either by email or other written communication. Franchisees cannot act as an exclusive distributor for any third-party vendor or secure exclusive rights for any vendor or proprietary product or equipment without prior written consent from Burros Fries.