factual

What is the definition of 'Accepted Location' for a Burros Fries franchise?

Burros_Fries Franchise · 2024 FDD

Answer from 2024 FDD Document

tate the terms of the applicable territory (a separate Franchise Agreement is required for each additional Business as defined in Section 9.D of this Agreement).

Franchisee must operate its Business within the specific Territory as identified in this Section VI. Franchisee may not open a Business at any other location other than the Accepted Location that has been set forth in this Agreement or made a part hereof by an addendum attached to this Agreement. Franchisee

may accept business, service guests and sell Products to anyone who comes from anywhere so long as the Products are being sold from the Accepted Location within its Territory. However, Franchisee can only provide Services within its Territory. Franchisee may perform Services outside its Territory, away from its facility (as described below).

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2024 FDD)

According to the 2024 Burros Fries Franchise Disclosure Document, the 'Accepted Location' is the specific site where the franchisee is authorized to operate their Burros Fries business. This location must be explicitly set forth in the Franchise Agreement or in an addendum attached to the agreement. The franchisee is not allowed to operate a Burros Fries business at any location other than the Accepted Location without prior authorization from Burros Fries.

The selection of the location is a mutual decision between the franchisor and franchisee. The territory will be defined from the actual business address once chosen. If the actual address has not been chosen by the time the parties sign the Franchise Agreement, they shall agree upon a temporary territory.

This has significant implications for a prospective Burros Fries franchisee. It emphasizes the importance of carefully selecting a location that meets the franchisor's approval, as the franchisee's operational rights are strictly limited to that specific site. Any deviation from the Accepted Location without approval constitutes a breach of the Franchise Agreement. This also means that the franchisee needs to get written approval from Burros Fries before investing any money into a site. The franchisee also acknowledges that Burros Fries' acceptance of a prospective site does not guarantee profitability or success.

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.