What is the amount of the initial franchise fee for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
s. These start-up costs include the Initial Franchise Fee.
9. FRANCHISEE'S INITIAL FRANCHISE FEE
A. Initial Franchise Fee and Payment
By executing this Franchise Agreement, the applicant agrees to become a Franchisee and pay an Initial Franchise Fee in the amount of Thirty-Five Thousand dollars ($35,000) for a Burros & Fries Business. This Initial Franchise Fee includes a license to operate a single Burros & Fries Business in a Territory that is up to three (3) miles driven in any direction from the Business determined by boundaries as described in Section 6 of this Agreement. The Initial Franchise Fee includes a regional web page housed within our national website, the complete training program at our corporate headquarters and manuals. We choose to allocate some of that time to pre-opening or grand opening assistance.
The Initial Franchise Fee per this Agreement is due upon execution of this Franchise Agreement. The Initial Franchise Fee is uniform as to all persons currently acquiring a franchise as of the effective date of this Agreement, although this may change. The Initial Franchise Fee shall be paid in a lump sum in U.S. funds and shall be deemed fully earned and no
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the initial franchise fee is $35,000. This fee grants the franchisee the right to operate a single Burros & Fries Business within a territory that extends up to three miles in any direction from the business location. The boundaries of this territory are detailed in Section 6 of the Franchise Agreement.
The initial franchise fee covers several essential components to help the franchisee get started. It includes a regional webpage hosted on Burros Fries's national website, providing an online presence for the new franchise. Additionally, the fee encompasses the complete training program conducted at the corporate headquarters, ensuring that franchisees and their staff are well-versed in the Burros Fries system. Franchisees also receive operations manuals as part of the training. Burros Fries may allocate some of the training time to provide pre-opening or grand opening assistance, offering hands-on support during the critical launch phase.
The initial franchise fee is due upon the execution of the Franchise Agreement. This fee is applied uniformly to all new franchisees as of the agreement's effective date, although Burros Fries retains the right to modify this fee structure in the future. Once paid, the initial franchise fee is considered fully earned and nonrefundable. This nonrefundable nature acknowledges the administrative and other expenses Burros Fries incurs in granting the franchise, as well as the company's lost opportunity to franchise others in the same area.