Can Burros Fries establish a company-owned business within a franchisee's territory?

According to Burros Fries's 2024 Franchise Disclosure Document, if a franchisee is provided with a territory, Burros Fries cannot establish a company-owned business within that territory during the term of the Franchise Agreement. This also applies to franchising or licensing another to locate a Burros Fries business within the franchisee's territory. The territory size is up to three miles driven in any direction from the franchise business, though Burros Fries reserves the right to adjust the territory size based on population density and other factors. The population data used to determine territory size is based on the most recently published data from the U.S. Census Bureau.

While franchisees are awarded a protected territory, they may still face competition from other franchisees and other channels of distribution or competitive brands that Burros Fries controls. Franchisees are permitted to service guests and sell approved retail items to anyone, regardless of where they come from, as long as the sales do not result from target marketing activities. Franchisees can also conduct off-site events and catering services within their territory and, under certain circumstances, outside their territory.

Burros Fries retains several rights, including the ability to advertise and market Burros & Fries branded products through various channels, such as the Internet, regardless of location. They can also sell and distribute products through alternative channels of distribution. Additionally, Burros Fries reserves the right to own and operate businesses outside the franchisee's territory, whether or not they use the Burros Fries marks or system, and to engage in transactions with other businesses, even competitors. These retained rights allow Burros Fries to explore different market strategies and business models without being restricted by the franchisee's territory.