Does Burros Fries currently have any supply contracts in place?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
We may offer or designate others to offer certain products, supplies, kitchen equipment or services and we may become approved suppliers or the only approved supplier(s) for these and other products, supplies, kitchen equipment and services. The products, supplies, kitchen equipment and services include: ingredients ( for any proprietary product we may have,, etc.), fresh produce, dairy products; beverage products (such as: tea, carbonated drinks, juices and specialty beverages), supplies (such as small wares, disposables, packaging materials, disposables and cooking supplies), kitchen equipment (such as: refrigerators, freezers, etc. as described in Item 7), furnishing and fixtures, technology items (such as computers and POS system) software, printed menus, signage, uniforms, professional laundry services, merchant services, printed advertising materials. You cannot purchase unapproved products or supplies and/or lease or purchase unapproved kitchen equipment from any vendor and/or supplier that are not on our pre-approved list without written permission. We will provide you with: a written list of approved products, supplies, kitchen equipment and services you can use and offer in your Business; recommended procedures and strategies when purchasing products and supplies and leasing or purchasing kitchen equipment for your Business; and a written list of approved vendors and/or suppliers to purchase and/or lease kitchen equipment, products, supplies and services from during our initial training program. If we develop proprietary products or if we develop proprietary equipment or software in the future, you must purchase such items from us, our affiliates or approved suppliers. We may become the approved suppliers or the only approved supplier for products, supplies, kitchen equipment and services in the future. There are no supply contracts at this time. None of our officers or directors owns any interest in any vendor or supplier other than us.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, Burros Fries does not currently have any supply contracts in place. However, Burros Fries retains the right to establish supply contracts in the future and may also become the approved or sole supplier for various products, supplies, kitchen equipment, and services. These items include ingredients, fresh produce, dairy products, beverage products, small wares, disposables, packaging materials, cooking supplies, kitchen equipment, furnishings, fixtures, technology items, software, printed menus, signage, and uniforms.
As a Burros Fries franchisee, you are obligated to purchase or lease kitchen equipment, furniture, fixtures, technology items, software, signage, uniforms, and an initial inventory of products and supplies. The FDD estimates that initial expenditures from Burros Fries, its affiliates, or specified/approved vendors will constitute approximately 45%-55% of your total initial purchases. During ongoing operations, required purchases from approved sources are estimated to be 90%-95% of total monthly purchases, excluding lease, royalties, and labor costs. This percentage can vary based on the size of the business, inventory levels, and sales volume.
Burros Fries will provide a written list of approved products, supplies, kitchen equipment, and services, along with recommended purchasing procedures and a list of approved vendors during the initial training program. Franchisees are prohibited from purchasing unapproved items from non-approved vendors without written permission. Burros Fries enforces these requirements through unannounced on-site visits and may also receive reports from other businesses or customers regarding unauthorized products or equipment. Franchisees must allow Burros Fries or its agents to remove products or equipment for testing to ensure compliance with standards and specifications. Failure to comply with these standards can result in fees and other actions, including injunctive relief or termination of the Franchise Agreement.