What evidence must a Burros Fries franchisee provide prior to opening for business?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
The Opening requires that Franchisee has qualified for and has obtained all necessary licenses and permits needed to sell Products and perform Services.
Before Franchisee opens a Burros & Fries Franchised Business, Franchisee must purchase insurance coverage from a responsible carrier with a performance rating of A or higher as rated in the most recent edition of Best Insurance Reports (or comparable criteria as we may specify) and Franchisee must maintain such insurance throughout the duration of the initial term of the Franchise Agreement and any renewal terms. Franchisee shall list us as additional insured on all its insurance policies. Franchisee will procure and maintain general liability insurance with a minimum policy limit of $2,000,000 per occurrence and $4,000,000 aggregate (this policy should include general tort, premises damage, personal advertising injury and product liability insurance which covers Franchisee for damages that result in injury from products Franchisee distributes). Plus, property and casualty insurance with a minimum policy limit of $2,000,000 or an amount specified by the us.
Franchisee must deliver a copy of the signed lease or sublease to us within five (5) business days after it is signed.
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- Permit Franchisee to operate a Burros & Fries Business in accordance with this Agreement and the Manuals;
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- Provide that the site will be used only for the operation of a Burros & Fries Business, and prohibit Franchisee from assigning or modifying any of Franchisee's lease rights, or extending the term without our prior written consent;
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- Require the lessor to concurrently provide us with a copy of any written notices of default to Franchisee under the lease and give us the right to cure any default if weso choose; within fifteen (15) days following the expiration of the Franchisee's cure period under the lease;
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- Provide us with a right to take assignment and possession of the Business, without the lessor's consent or any additional consideration.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, before opening a Burros & Fries franchise, a franchisee must provide evidence of several key items. The franchisee needs to show they have obtained all necessary licenses and permits required to sell products and perform services. This ensures the business operates legally and meets all local and federal regulations.
Furthermore, the franchisee must purchase and maintain specific insurance coverage. This includes general liability insurance with a minimum policy limit of $2,000,000 per occurrence and $4,000,000 aggregate, covering general tort, premises damage, personal advertising injury, and product liability. Additionally, they need property and casualty insurance with a minimum policy limit of $2,000,000 or an amount specified by Burros Fries, "All Risks" or "Special Form" insurance, employer liability insurance, automobile liability insurance with minimum coverage of $100,000, business interruption insurance for at least 180 days, and statutory workers' compensation insurance. The franchisee must list Burros Fries as an additional insured on all insurance policies.
Finally, the franchisee must provide a copy of the signed lease or sublease to Burros Fries within five business days after signing. The lease must include provisions allowing the franchisee to operate a Burros & Fries business, restricting the site's use to only a Burros & Fries business, preventing assignment or modification of lease rights without prior written consent, requiring the lessor to provide Burros Fries with copies of default notices, and granting Burros Fries the right to take assignment and possession of the business. These requirements ensure that Burros Fries has the necessary protections and oversight over the franchise's operations and location.