Who bears the expense of implementing a rewards program for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
8. FRANCHISEE'S INITIAL INVESTMENT
The Franchisee's initial investment will vary depending upon the size of the facility's built out expenses, if Franchisee chooses to install certain kitchen equipment and inventory Franchisee purchases, number of employees Franchisee hires, time of year when Franchisee starts business, implementation of a marketing plan, Franchisee's management skills, economic conditions, competition in the surrounding area and other factors.
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 implementing a marketing plan. This would likely include the costs of implementing a rewards program.
Item 22 details the Franchise Agreement, which outlines the obligations of both the franchisor and the franchisee. While the franchisor manages the System Advertising Fund for broader advertising and marketing initiatives, the franchisee is expected to handle local marketing efforts. This division of responsibility is common in franchising, where national-level campaigns are centrally managed, and local promotions are left to the individual franchisee.
Therefore, a prospective Burros Fries franchisee should factor in the costs of establishing and maintaining a rewards program as part of their initial investment and ongoing operational expenses. These costs can include software, printing of materials, and any discounts or incentives offered through the program.