Who bears the cost of a Burros Fries inspection requested by the franchisee?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchise Agreement, Section 20.A).
- (2) Monitor the operation of your Business and inspect the inventory of products, supplies and kitchen equipment at your Business then advise you of the results for each inspection, at our cost. If you fail the inspection twice in any two (2) year period, we may charge you a fee of $1,000 (as described above in Item 8). If we have not inspected your Business in the past twelve (12) months and you would like to have an inspection performed, you will need to notify us in writing and we will perform the inspection within three (3) months of your request. For any inspections that you request, the cost of the inspection will be at your expense (Franchise Agreement
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–38)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the cost of an inspection requested by the franchisee is borne by the franchisee. Specifically, if Burros Fries has not inspected a franchisee's business in the past twelve months and the franchisee requests an inspection, Burros Fries will perform the inspection within three months of the request, but the franchisee will pay for it.
In contrast, Burros Fries bears the cost of its own regularly scheduled inspections. However, if a Burros Fries franchisee fails an inspection twice in any two-year period, Burros Fries may charge the franchisee a fee of $1,000.
This policy incentivizes franchisees to maintain high standards and proactively address any operational issues. Franchisees should factor in the potential cost of these requested inspections when budgeting for their ongoing operational expenses.