What is the dependency for determining the Burros Fries territory?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
itional Location. Franchisee may face competition for Services from other franchises, company-owned businesses or from other channels of distribution we control.
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 shall not relocate its Business that has been assigned a Territory without our prior written consent (specified in Section 22.A). If Franchisee is provided with a Territory then during the term of this Agreement, we shall not establish, nor license another party or entity to establish, Burros & Fries Business within the Territory outlined above.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the territory is not dependent upon specific performance metrics. The territory size is determined by Burros Fries based on factors like population, demographics, traffic, proximity to roads, parking, competition, business potential, site availability, square footage, and rent conditions.
Once Burros Fries approves a location, the territory is set and will not change during the agreement, even if the population changes. The boundaries are defined by topographical features like streets, highways, rivers, and mountains. Burros Fries determines the size and boundaries of the protected territory.
Burros Fries grants a protected territory, typically around a three-mile radius from the business. If the location isn't chosen when the agreement is signed, a temporary territory is agreed upon. The final territory is defined once the actual business address is chosen. However, the franchisee is not granted an exclusive territory.