factual

Can Burros Fries change the list of approved vendors at any time?

Burros_Fries Franchise · 2024 FDD

Answer from 2024 FDD Document

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.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2024 FDD)

According to Burros Fries's 2024 Franchise Disclosure Document, Burros Fries has the authority to modify the list of approved vendors at any time with written notice to the franchisee. This includes the ability to add to, modify, or change the approved products, supplies, kitchen equipment, vendors, and suppliers. The franchisee is then obligated to promptly accept and implement these changes at their own expense.

This provision allows Burros Fries to maintain quality control and uniformity across all franchise locations by dictating where franchisees must source their products, supplies, and equipment. It also enables Burros Fries to negotiate better deals with suppliers or switch to suppliers that offer better quality or service. However, it also means that franchisees have limited autonomy in choosing their vendors and are subject to changes that may impact their costs or operations.

While Burros Fries has the right to change approved vendors, they also consider various factors when initially approving a vendor. These factors include price, quality, composition, performance, accuracy of product claims, durability, safety, technical specifications, frequency of delivery, design, service maintenance programs, quality control, value, customer service, complaint handling, litigation history, supplier reputation, product recalls, financial strength, and the supplier's capacity to meet franchisee needs reliably and cost-effectively. This suggests that while changes can occur, they are likely made with the intention of benefiting the franchise system as a whole.

Prospective franchisees should be aware that they are required to purchase or lease all products, supplies, kitchen equipment, and services from Burros Fries, its affiliates, or approved vendors. Failure to comply with this requirement and using unapproved items may result in the termination of the Franchise Agreement. Franchisees are allowed to request approval for vendors not on the approved list, but such approval is at Burros Fries's sole discretion and must be requested in writing, with Burros Fries having 30 days to respond.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.