What is the deadline for a Burros Fries franchisee to open their Business for operation after executing the Franchise Agreement, including obtaining approval?
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 Burros Fries's 2024 Franchise Disclosure Document, a franchisee must open their Burros Fries business for operation within 24 months from the date of the Franchise Agreement's execution. This timeframe includes securing a lease approved by Burros Fries within 18 months of the agreement's effective date. Meeting these deadlines is crucial, as failure to do so allows Burros Fries to terminate the franchise agreement and retain all fees paid by the franchisee.
Burros Fries may grant a single 60-day extension for securing a lease or opening the business, providing some flexibility. The opening of the business requires the franchisee to have obtained all necessary licenses and permits to sell products and perform services. This highlights the importance of efficient planning and execution in the initial stages of setting up the franchise.
This requirement is fairly standard in the franchise industry, as franchisors want to ensure that franchisees are actively working to establish their businesses and generate revenue for both parties. Prospective franchisees should carefully consider these timelines and ensure they have a realistic plan for securing a location, obtaining necessary approvals and permits, and opening their Burros Fries business within the specified timeframe.