What is the deadline for securing a lease for a Burros Fries business after the execution of the Franchise Agreement?
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' 2024 Franchise Disclosure Document, a franchisee must secure a lease approved by the company within eighteen months of the Franchise Agreement's execution date. Additionally, the franchisee must open the Burros Fries business for operation within twenty-four months from the date the Franchise Agreement was executed.
Failure to meet either of these deadlines allows Burros Fries, at its discretion, to terminate the franchise agreement. If terminated, Burros Fries will retain all fees paid by the franchisee without breaching the agreement.
However, Burros Fries may grant a franchisee a one-time, sixty-day extension to secure a lease or open the business. This extension is not guaranteed, so franchisees should aim to meet the initial deadlines.