Can Burros Fries designate specific sources that a franchisee must use?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
To insure the consistent high quality and uniformity of Products and Services provided by the Franchised Businesses, Franchisee must lease or purchase all products, supplies, kitchen equipment and services (as described above) for use in the operation of its Business, from us, our affiliates or approved vendors who demonstrate to our continuing satisfaction an ability to meet our standards and specifications.
We are not liable to Franchisee for any loss or damage, or deemed to be in breach of this Agreement, if we, our affiliates or approved vendors and/or suppliers cannot deliver, or cause to be delivered, Franchisee's order of products, supplies or kitchen equipment where such items are outof-stock or discontinued.
Franchisee is prohibited from purchasing or leasing products, supplies, kitchen equipment and services from unapproved vendors and/or suppliers who are not on our approved list without our written approval.
We shall approve or deny Franchisee's request, which approval is in our sole discretion, within thirty (30) days of receipt of Franchisee's written request.
Such approval or disapproval shall be made by email or any other form of written communication.
Failure of Franchisee to purchase such items from us, our affiliates or approved vendors and/or supplies and use such unapproved items in the operation of its Business may result in termination of this Agreement as specified in Section 23.C of this Agreement.
In approving any vendor or supplier we may consider factors such as: price, quality, composition, performance, accuracy of product claims, durability, safety, technical specifications, frequency of delivery, design, service maintenance programs, determination of quality control, value, customer service strength, prompt attention to complaints, litigation against the supplier, reputation of supplier, any product recalls instituted by the United States Consumer Product Safety Commission, the supplier's financial strength and capacity to supply franchisee's needs promptly, reliably, and cost effectively.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees are required to purchase or lease all products, supplies, kitchen equipment, and services from Burros Fries, its affiliates, or approved vendors. These vendors must demonstrate the ability to meet Burros Fries's standards and specifications to ensure consistent high quality and uniformity of products and services across all franchised businesses.
Burros Fries retains the right to approve or deny a franchisee's request to use a vendor not already on the approved list, a decision made at Burros Fries's sole discretion. This decision will be communicated within 30 days of the written request. Failure to use approved vendors and items may result in the termination of the Franchise Agreement.
When approving vendors or suppliers, Burros Fries may consider factors such as price, quality, composition, performance, accuracy of product claims, durability, safety, technical specifications, frequency of delivery, design, service maintenance programs, quality control, value, customer service, response to complaints, litigation history, supplier reputation, product recalls, financial strength, and the capacity to meet franchisee needs promptly and cost-effectively. This comprehensive evaluation aims to ensure that all vendors meet the high standards expected by Burros Fries.