Who assumes the costs, liability, expense, and responsibility for locating a site for the Burros Fries franchise?
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, the franchisee is responsible for all costs, liability, expenses, and responsibilities associated with finding, securing, and developing a site for their Burros Fries franchise. This includes equipping the business at the chosen location. The FDD specifies that a typical Burros Fries business requires approximately 2,500 to 3,000 square feet of enclosed space, separate from other businesses and with its own locking door.
The franchisee can either buy or lease the property, but any agreement is subject to Burros Fries's written approval. The franchisee is prohibited from signing any lease or purchase contract, or investing any money in a site, before receiving written approval from Burros Fries. Upon signing a lease, the franchisee must provide Burros Fries with a copy of the executed lease and an option for Burros Fries to assume the lease if necessary.
Burros Fries must approve all improvements to the business location. The document explicitly states that Burros Fries's acceptance of a site or assistance in site selection does not guarantee the profitability or success of the Burros Fries franchise at that location. This places the onus of due diligence and risk assessment squarely on the franchisee when choosing a location.