What are some examples of 'supplies' that a Burros Fries franchisee must purchase from approved vendors?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee acknowledges that we have spent considerable time in developing the Products, Services, standards, processes, methods and technology used in the operation of a Burros & Fries Business. Accordingly, Franchisee acknowledges that Franchisee is to use only approved products, supplies, kitchen equipment, vendors, suppliers and services that includes, but is not limited to: ingredients (such as dry goods, our spice packages, sauces, dressings, condiments, 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), any merchandise for sale (such as: shirts, hats, baby bibs, etc.), kitchen equipment (such as: refrigerators, freezers, etc. as described in Item 7), furnishing and fixtures, technology items (such as computers, POS system, sound system, etc.), software, printed menus, signage, uniforms, professional laundry services, merchant services, POS and technology support services and printed advertising materials necessary for the operation of the Business. We may derive income through license fees, promotional fees, advertising allowances, rebates or other monies paid by approved vendors and/or suppliers. We do not know the precise basis of these payments because we have never previously collected them but if we collect such payments we have the discretion to use them as we determine. If we require Franchisee to buy from us, products, supplies or kitchen equipment the price and quality will be comparable to similar products, supplies and kitchen equipment from other sources Franchisee agreesthat we may periodically and upon written notice, add to, modify or change such approved products, supplies, kitchen equipment, vendors and suppliers and there is no limit in our right do so. Franchisee promises to promptly accept and implement, in the operation of its Business, all such additions, modifications and changes at Franchisees expense. In addition, Franchisee acknowledgesthat:
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees must purchase certain supplies from approved vendors to ensure quality and uniformity. These supplies include small wares, disposables, packaging materials, and cooking supplies.
Burros Fries maintains control over its brand standards by requiring franchisees to source these items from approved vendors. This ensures consistency in the products and services offered at all locations. Franchisees are prohibited from purchasing these items from unapproved vendors without written approval from Burros Fries, and failure to comply may result in termination of the franchise agreement.
Burros Fries may receive income from approved vendors through license fees, promotional fees, advertising allowances, or rebates. The franchisor has the discretion to determine how these payments are used. However, if Burros Fries requires franchisees to purchase products, supplies, or kitchen equipment directly from them, the price and quality will be comparable to similar items from other sources.
Burros Fries retains the right to add, modify, or change the approved products, supplies, kitchen equipment, vendors, and suppliers periodically. Franchisees are obligated to promptly accept and implement these changes at their own expense, ensuring that the Burros Fries system remains consistent and up-to-date.