Is development and construction of the Burros Fries business an obligation of the franchisee?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee assumes all costs, liability, expense, and responsibility for locating, obtaining and developing a site for the Franchise Business to be established under the Franchise Agreement and for equipping the Business at such premises. A typical Burros & Fries Business has approximately 2,500- 3,000 square feet of space. The space must be enclosed and separate from other businesses with its own locking door. Franchisee may buy or lease the required real property and improvements from any source and on terms approved by us in writing. Franchisee may not sign a lease (or a contract to purchase the premises, if applicable) for the Business until Franchisee has obtained our written approval. Franchisee must not invest any monies for a site in which Franchisee wishes to open a Business until Franchisee has obtained our written approval for the site which will be made by email or any other form of written communication. On the execution of any lease for the Franchise Business, Franchisee will deliver to us a copy of the executed lease and an option to assume the lease executed by the lessor in favor of us in a form acceptable to us. All improvements to the Business must be approved by us.
FRANCHISEE ACKNOWLEDGES THAT OUR ACCEPTANCE OF A PROSPECTIVE SITE AND THE RENDERING OF ASSISTANCE IN THE SELECTION OF A SITE DOES NOT CONSTITUTE A REPRESENTATION, PROMISE, WARRANTY, OR GUARANTEE BY US THAT A BURROS & FRIES FRANCHISE OPERATED AT THAT SITE WILL BE PROFITABLE OR OTHERWISE SUCCESSFUL.
Franchisee acknowledges that we have spent considerable amount of time choosing and creating the décor and outfitting Burros & Fries Businesses. It is part of our trade dress. Franchisee acknowledges and agrees that the design, layout and other characteristics of the Business constitute and/or contain
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees are responsible for site selection and development. The franchisee assumes all costs and responsibilities for locating, obtaining, and developing the site for their Burros Fries franchise. This includes equipping the business premises. A typical Burros Fries business requires approximately 2,500 to 3,000 square feet of space, which must be enclosed and separate from other businesses, with its own locking door.
The franchisee can either buy or lease the property, but Burros Fries must provide written approval of the terms. The franchisee cannot sign any lease or purchase agreement until they have received written approval from Burros Fries. Furthermore, the franchisee must not invest any money in a site before obtaining written approval from Burros Fries. Upon executing a lease, the franchisee must provide Burros Fries with a copy of the executed lease and an option for Burros Fries to assume the lease if necessary.
Burros Fries must approve all improvements to the business location. The FDD emphasizes that Burros Fries's acceptance of a site and any assistance provided does not guarantee the profitability or success of the franchise at that location. The design, layout, and other characteristics of the Burros Fries business are considered confidential information and trade secrets, and the franchisee must maintain and operate the business accordingly.