Who bears the expense of updating technology items and software for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee acknowledges that we have spent considerable time in developing the Products, Services, standards, processes, methods and technology used in the operation of a Burros & Fries Business. Accordingly, Franchisee acknowledges that Franchisee is to use only approved products, supplies, kitchen equipment, vendors, suppliers and services that includes, but is not limited to: ingredients (such as dry goods, our spice packages, sauces, dressings, condiments, etc.), fresh produce, dairy products; beverage products (such as: tea, carbonated drinks, juices and specialty beverages), supplies (such as small wares, disposables, packaging materials, disposables and cooking supplies), any merchandise for sale (such as: shirts, hats, baby bibs, etc.), kitchen equipment (such as: refrigerators, freezers, etc. as described in Item 7), furnishing and fixtures, technology items (such as computers, POS system, sound system, etc.), software, printed menus, signage, uniforms, professional laundry services, merchant services, POS and technology support services and printed advertising materials necessary for the operation of the Business. We may derive income through license fees, promotional fees, advertising allowances, rebates or other monies paid by approved vendors and/or suppliers. We do not know the precise basis of these payments because we have never previously collected them but if we collect such payments we have the discretion to use them as we determine. If we require Franchisee to buy from us, products, supplies or kitchen equipment the price and quality will be comparable to similar products, supplies and kitchen equipment from other sources Franchisee agreesthat we may periodically and upon written notice, add to, modify or change such approved products, supplies, kitchen equipment, vendors and suppliers and there is no limit in our right do so. Franchisee promises to promptly accept and implement, in the operation of its Business, all such additions, modifications and changes at Franchisees expense. In addition, Franchisee acknowledgesthat:
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 updating technology and software. Burros Fries requires franchisees to use only approved products, supplies, kitchen equipment, vendors, suppliers, and services, including technology items and software.
The franchisee must promptly implement any additions, modifications, or changes to these approved items at their own expense. This includes technology items such as computers, POS systems, and sound systems, as well as any required software. This requirement ensures uniformity and compliance with Burros Fries standards across all franchise locations.
This means that a Burros Fries franchisee should budget for ongoing technology upgrades and software updates as part of their operating expenses. While the franchisor may introduce new technologies or software to improve efficiency or customer experience, the cost of adopting these changes falls on the franchisee. This is a common practice in franchising, where franchisees typically bear the cost of maintaining and updating their business to align with the franchisor's standards and advancements.