What factors are considered when determining the territory for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
The Territory will be determined by population base, demographics of the surrounding area, traffic patterns, proximity to major roads, available parking, competition, business potential, availability of appropriate sites, adequate square footage, reasonable rent or other conditions important to the successful operation of a Franchised Business as we deem appropriate. The Territory is determined once a location is chosen and approved by us, and will not be altered even if there is a population increase or decrease during the term of this Agreement. The Territory is not dependent upon achievement of certain revenues, market penetration or any other contingency. The boundaries of the Territory described above shall be determined by major topographical features which clearly define contiguous areas such as: Streets, highways,freeways or other roadways, rivers, streams, mountains and underdeveloped land. We determine the size and boundaries of the protected Territory.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the territory is determined by several factors related to the location's potential and characteristics. These include the population base, demographics of the surrounding area, traffic patterns, proximity to major roads, available parking, competition, business potential, availability of appropriate sites, adequate square footage, and reasonable rent. Burros Fries also considers other conditions it deems appropriate for the successful operation of the franchised business. The territory is finalized once a location is chosen and approved by Burros Fries.
Once the territory is set, it will not be altered, even if there are changes in population during the agreement term. The territory's boundaries are defined by major topographical features like streets, highways, rivers, and mountains. Burros Fries determines the size and boundaries of the protected territory. The initial franchise fee of $35,000 grants a license to operate a single Burros & Fries Business in a territory that extends up to three (3) miles driven in any direction from the Business, with boundaries as described in Section 6 of the agreement.
It is important to note that the franchisee is not granted an exclusive territory but rather a protected territory. The final territory will be defined from the actual business address once chosen. The franchisee must operate within this specific territory and cannot open a business at any other location without an addendum to the agreement. Burros Fries retains rights to operate other businesses not substantially similar to a Burros & Fries Business within the territory and any kind of business outside the territory.