Who bears the expense if Burros Fries directs a franchisee to change the Marks?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee further agrees that, upon termination or expiration of this Agreement, Franchisee shall immediately and permanently cease to use, by advertising, or any manner whatsoever, any Confidential Information, methods, trade secrets, procedures, descriptions of Products and Services associated with us and the Names and Marks and any proprietary marks and distinctive forms, slogans, symbols, signage, logos or devices associated with the System. In particular, Franchisee shall cease to use, without limitation, all signage (this includes vehicles with graphics, if applicable), advertising materials, menus, stationery, forms and any other articles, which display the Names and Marks. Franchisee shall make or cause to be made, at its expense, changes directed by us in signage, vehicles (if applicable), building and structures so as to effectively distinguish the surviving business entity, if any, from itsformer appearance and from other existing Burros & Fries Businesses. Franchisee shall comply with the covenant not to compete and the agreement to maintain the confidentiality of proprietary information, as well as return all information that is considered to be Confidential Information under the terms and conditions of this Agreement back to us.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the franchisee is responsible for the expenses associated with changes to signage, vehicles, buildings, and structures directed by Burros Fries to distinguish the business after termination or expiration of the franchise agreement. This includes making changes to effectively differentiate the business from its former appearance as a Burros Fries location.
This obligation arises specifically when the Franchise Agreement is terminated or expires. In such cases, the franchisee must take steps to ensure that the business no longer appears to be associated with the Burros Fries brand. This could involve removing logos, changing the color scheme, and altering the overall design of the premises.
The financial impact of these changes can be significant, depending on the extent of the alterations required. Franchisees should factor in these potential costs when evaluating the overall investment and potential risks associated with the Burros Fries franchise. It is important to note that these expenses are the responsibility of the franchisee, not Burros Fries.