How are the boundaries of a Burros Fries territory defined?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee is not granted an exclusive territory. The Franchisee is granted a Territory that is a protected territory as defined in this Agreement. The location of the Franchise Business shall be as the parties agree, usually about a radius of three (3) miles. If the actual Franchise Business address has not yet been chosen by the time the parties sign the Franchise Agreement they shall agree upon a temporary territory. The final Territory will be defined from the actual Business address once chosen.
The protected Territory for a Business that is not in a Non-Traditional Location will be: ________miles driven from any direction of the Business.
The Territory will be determined by population base, demographics of the surrounding area, traffic patterns, proximity to major roads, available parking, competition, business potential, availability of appropriate sites, adequate square footage, reasonable rent or other conditions important to the successful operation of a Franchised Business as we deem appropriate. The Territory is determined once a location is chosen and approved by us, and will not be altered even if there is a population increase or decrease during the term of this Agreement. The Territory is not dependent upon achievement of certain revenues, market penetration or any other contingency. The boundaries of the Territory described above shall be determined by major topographical features which clearly define contiguous areas such as: Streets, highways,freeways or other roadways, rivers, streams, mountains and underdeveloped land. We determine the size and boundaries of the protected Territory.
Franchisee must operate its Business within the specific Territory as identified in this Section VI. Franchisee may not open a Business at any other location other than the Accepted Location that has been set forth in this Agreement or made a part hereof by an addendum attached to this Agreement. Franchisee
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, a franchisee is granted a protected territory. The location of the franchise will be agreed upon by both parties, typically around a three-mile radius. If the actual business address is not chosen when signing the Franchise Agreement, a temporary territory will be agreed upon. The final territory will be defined once the business address is chosen. For a Burros & Fries business that is not in a non-traditional location, the protected territory will be defined by a certain number of miles driven from any direction of the business, with the specific number of miles to be determined.
The FDD also states that the territory will be determined by several factors including population base, demographics, traffic patterns, proximity to major roads, available parking, competition, business potential, site availability, square footage, and reasonable rent. The territory is determined once a location is chosen and approved by Burros Fries, and it will not be altered during the agreement term, even with population changes. The territory's boundaries are defined by major topographical features such as streets, highways, rivers, mountains, and underdeveloped land.
Burros Fries determines the size and boundaries of the protected territory. The franchisee must operate within this specific territory and cannot open a business at any other location without an addendum to the agreement. If a franchisee wants to open additional businesses, separate franchise agreements will dictate the terms for those territories. It's important to note that Burros Fries retains rights not expressly granted to the franchisee, including operating similar businesses outside the territory and developing other concepts, potentially impacting the franchisee's business environment.