factual

When are costs and attorney's fees due to Burros Fries?

Burros_Fries Franchise · 2024 FDD

Answer from 2024 FDD Document

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Audit Expenses Cost of Audit Fees plus interest at 18% per annum (1.5% per month) up to the maximum interest rate allowed by law. Ten days after receipt of audit report. Payable to us only if you understate Gross Revenues by 2% or more. We expect the cost to be between $3,500-$6,500 unless your financial records are not well kept.
Costs and Attorney's Will vary under circumstances. As Incurred. Payable as incurred by us in obtaining injunctive relief or the enforcement of any item of the Franchise Agreement.
Fees
Indemnification Will vary under circumstances. On Demand. As Incurred; See Note 4.
POS Support Currently $130-$140 per month for 1 cash register, software and ongoing support. Monthly. Payable to our approved vendors. See Note 5
Laundry Service Fees Currently $1,000-$1,500 per month for professional laundry services Monthly. Payable to our approved vendors. See Note 6
Inspection Fee $1,000 if you fail to pass an inspection for the second time. On Demand. Payable to us See Note 7 and Item 8.
Renewal Fee $5,000 At the time of every renewal for each franchise. Payable to us for the same protected area.
Product, Vendor and Equipment Testing Fee $300 per product, menu item or vendor. $300 for equipment testing. On Demand See Note 8

Source: Item 6 — OTHER FEES (FDD pages 12–16)

What This Means (2024 FDD)

According to Burros Fries's 2024 Franchise Disclosure Document, costs and attorney's fees are due 'as incurred.' This means that the franchisee is responsible for paying these fees as Burros Fries incurs them.

The fees are payable if Burros Fries incurs them while obtaining injunctive relief or enforcing any part of the Franchise Agreement. Injunctive relief typically refers to a court order that requires the franchisee to stop doing something that violates the agreement. Enforcement can include any legal action Burros Fries takes to make sure the franchisee follows the terms of the agreement.

It is important for a prospective Burros Fries franchisee to understand that these costs can vary significantly depending on the specific circumstances and the legal actions Burros Fries might need to take. Franchisees should factor in the potential for these costs when assessing the overall financial obligations of the franchise.

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.