Does Burros Fries assume any liability or obligation to the franchisee by providing any waiver, approval, consent, or suggestion?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee assumes all costs, liability, expense, and responsibility for locating, obtaining and developing a site for the Franchise Business to be established under the Franchise Agreement and for equipping the Business at such premises. A typical Burros & Fries Business has approximately 2,500- 3,000 square feet of space. The space must be enclosed and separate from other businesses with its own locking door. Franchisee may buy or lease the required real property and improvements from any source and on terms approved by us in writing. Franchisee may not sign a lease (or a contract to purchase the premises, if applicable) for the Business until Franchisee has obtained our written approval. Franchisee must not invest any monies for a site in which Franchisee wishes to open a Business until Franchisee has obtained our written approval for the site which will be made by email or any other form of written communication. On the execution of any lease for the Franchise Business, Franchisee will deliver to us a copy of the executed lease and an option to assume the lease executed by the lessor in favor of us in a form acceptable to us. All improvements to the Business must be approved by us.
FRANCHISEE ACKNOWLEDGES THAT OUR ACCEPTANCE OF A PROSPECTIVE SITE AND THE RENDERING OF ASSISTANCE IN THE SELECTION OF A SITE DOES NOT CONSTITUTE A REPRESENTATION, PROMISE, WARRANTY, OR GUARANTEE BY US THAT A BURROS & FRIES FRANCHISE OPERATED AT THAT SITE WILL BE PROFITABLE OR OTHERWISE SUCCESSFUL.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees bear the ultimate responsibility for site selection. While Burros Fries offers site selection assistance, the company does not guarantee the location's profitability or success.
Specifically, the FDD states that the franchisee assumes all costs, liability, expense, and responsibility for locating, obtaining, and developing a site for the franchise. Before signing a lease or purchase contract, franchisees must obtain written approval from Burros Fries. This approval process includes submitting the lease or purchase contract for review.
The FDD explicitly states that Burros Fries's acceptance of a site and assistance in site selection does not constitute a representation, promise, warranty, or guarantee that a Burros Fries franchise operated at that site will be profitable or otherwise successful. This means that even with Burros Fries's approval, the franchisee bears the risk of the location's performance.