What is the condition for Burros Fries to terminate the Franchise Agreement if a lease is not secured?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
The Franchisee shall maintain the Business in accordance with the provisions and requirements of Section 12 hereof, and must secure a lease that has been approved by us (as described in Section 12.S) within eighteen (18) months of the execution of this Franchise Agreement ("Effective Date") and open the Business for operation (the "Opening") within twenty-four (24) months from the date of execution of this Franchise Agreement. Upon Franchisee's failure to meet either of the above requirements; then we may, at our sole discretion, terminate the Franchise and this Agreement and retain all fees paid by Franchisee, without breach of this Agreement by us as specified in Section 23.C. The Opening requires that Franchisee has qualified for and has obtained all necessary licenses and permits needed to sell Products and perform Services. We may, in our discretion, grant Franchisee one sixty (60) day extension past the allotted time within which to secure a lease and/or open the Business.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, Burros Fries can terminate the Franchise Agreement if the franchisee does not secure an approved lease within eighteen months of the Franchise Agreement's effective date. Additionally, the franchisee must open the business for operation within twenty-four months of the agreement's effective date.
Burros Fries retains the right to terminate the franchise if either of these deadlines are missed. If Burros Fries terminates the agreement, they will retain all fees paid by the franchisee without breaching the agreement.
However, Burros Fries may grant a one-time, sixty-day extension for securing a lease or opening the business, at their discretion. This extension provides some flexibility, but ultimately, meeting the deadlines is critical for the franchisee to avoid termination and loss of invested fees.