What are some examples of services for which Burros Fries may designate approved suppliers?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
We may offer or designate others to offer certain products, supplies, kitchen equipment or services and we may become approved suppliers or the only approved supplier(s) for these and other products, supplies, kitchen equipment and services. The products, supplies, kitchen equipment and services include: ingredients ( for any proprietary product we may have,, etc.), fresh produce, dairy products; beverage products (such as: tea, carbonated drinks, juices and specialty beverages), supplies (such as small wares, disposables, packaging materials, disposables and cooking supplies), kitchen equipment (such as: refrigerators, freezers, etc. as described in Item 7), furnishing and fixtures, technology items (such as computers and POS system) software, printed menus, signage, uniforms, professional laundry services, merchant services, printed advertising materials. You cannot purchase unapproved products or supplies and/or lease or purchase unapproved kitchen equipment from any vendor and/or supplier that are not on our pre-approved list without written permission. We will provide you with: a written list of approved products, supplies, kitchen equipment and services you can use and offer in your Business; recommended procedures and strategies when purchasing products and supplies and leasing or purchasing kitchen equipment for your Business; and a written list of approved vendors and/or suppliers to purchase and/or lease kitchen equipment, products, supplies and services from during our initial training program. If we develop proprietary products or if we develop proprietary equipment or software in the future, you must purchase such items from us, our affiliates or approved suppliers. We may become the approved suppliers or the only approved supplier for products, supplies, kitchen equipment and services in the future. There are no supply contracts at this time. None of our officers or directors owns any interest in any vendor or supplier other than us.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the franchise may designate approved suppliers for a variety of services. These include professional laundry services, merchant services, printed advertising materials, POS (Point of Sale) and technology support service providers.
Burros Fries maintains the right to become the exclusive approved supplier for these and other services in the future. Franchisees are prohibited from purchasing or leasing unapproved kitchen equipment or using products from vendors not on the pre-approved list without written permission from Burros Fries. The FDD states that Burros Fries will provide a written list of approved products, supplies, kitchen equipment, and services that franchisees can use in their business, along with recommended procedures and strategies for purchasing and leasing.
Burros Fries also enforces these requirements through unannounced on-site visits to the franchisee's business. During these visits, they may inspect the inventory to determine if unauthorized products, kitchen equipment, or services are being used. Franchisees must allow Burros Fries or its agents to remove products or equipment for testing to ensure they meet the brand's standards and specifications. Failure to comply with these standards can result in penalties, including a $1,000 fee for failing a second inspection within a two-year period, and potential legal action, including termination of the Franchise Agreement.