What is the definition of 'Territory' for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee is not granted an exclusive territory. The Franchisee is granted a Territory that is a protected territory as defined in this Agreement. The location of the Franchise Business shall be as the parties agree, usually about a radius of three (3) miles. If the actual Franchise Business address has not yet been chosen by the time the parties sign the Franchise Agreement they shall agree upon a temporary territory. The final Territory will be defined from the actual Business address once chosen.
The Territory will be determined by population base, demographics of the surrounding area, traffic patterns, proximity to major roads, available parking, competition, business potential, availability of appropriate sites, adequate square footage, reasonable rent or other conditions important to the successful operation of a Franchised Business as we deem appropriate. The Territory is determined once a location is chosen and approved by us, and will not be altered even if there is a population increase or decrease during the term of this Agreement. The Territory is not dependent upon achievement of certain revenues, market penetration or any other contingency. The boundaries of the Territory described above shall be determined by major topographical features which clearly define contiguous areas such as: Streets, highways,freeways or other roadways, rivers, streams, mountains and underdeveloped land. We determine the size and boundaries of the protected Territory.
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
If Franchisee is in default of the Franchise Agreement, as an alternative to termination, we may modify or completely eliminate any rights that Franchisee may have with respect to exclusivity in the Territory, effective ten (10) days after delivery of written notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, a franchisee is granted a protected territory, not an exclusive one. The location of the franchise is typically agreed upon as being within a radius of three miles. If the actual franchise address has not been chosen when the Franchise Agreement is signed, a temporary territory will be agreed upon. The final territory will be defined once the business address is chosen.
The Territory's size and boundaries are determined by Burros Fries and are based on factors such as population, demographics, traffic patterns, proximity to major roads, parking, competition, business potential, site availability, square footage, and rent. The boundaries are defined by major topographical features like streets, highways, rivers, and mountains. The territory will not be altered even if there is a population increase or decrease during the agreement.
Burros Fries retains rights within the territory, including the right to operate businesses not substantially similar to a Burros & Fries Business, sell branded products through other channels, and engage with other concepts or businesses. The franchisee must operate within their assigned territory and cannot relocate without prior written consent. If a franchisee defaults on the Franchise Agreement, Burros Fries has the right to modify or eliminate any rights the franchisee may have with respect to exclusivity in the Territory.