What is the cost for testing a new vendor for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
10.G and 12.Q).
Note 8: You will be required to obtain our written approval for any type of product (including menu or retail item), vendor and/or supplier or piece of kitchen equipment you wish to use in the operation of your Business (as described in Item 8) and you will be responsible for paying us an assessment fee. This fee is $300 for any single product (including a menu or a retail item), vendor and/or supplier you wish to offer, use and/or substitute in your Business. The fee for kitchen equipment testing is a minimum of $300 per piece or the actual cost incurred by us, if higher. We may waive these fees if the products (including menu or retail items), vendors and/or suppliers or equipment you select meet our requirements and make it on our approved list of products (including menu or retail items), vendors and/or suppliers and kitchen equipment for all franchise locations. All product, vendor and equipment assessment fees are payable only to us. However, if we need to use the services of a third party to conduct the testing, we reserve the right to impose an additional fee. Product, vendor and equipment assessment fees are non-refundable and are uniformly imposed (Franchis
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, if a franchisee wants to use a product, vendor, or supplier that is not already approved, they must first obtain written approval from Burros Fries. The franchisee is responsible for paying an assessment fee for this approval. The fee is $300 for any single product, vendor, or supplier that the franchisee wishes to use in their business. However, Burros Fries may waive this fee if the selected products, vendors, or suppliers meet their requirements and are added to the approved list for all franchise locations.
If Burros Fries needs to use a third party to conduct the testing of the new vendor, they reserve the right to impose an additional fee on the franchisee. All product, vendor, and equipment assessment fees are payable to Burros Fries and are non-refundable, regardless of the outcome of the testing. These fees are uniformly imposed on all franchisees.
This policy ensures that all Burros Fries locations maintain consistent quality and standards. While the initial $300 fee may seem straightforward, the potential for additional third-party testing fees introduces uncertainty. A prospective franchisee should inquire about the typical circumstances that would trigger additional testing fees and the estimated range of those costs to better prepare for potential expenses.