What factors might influence the size of a Burros Fries territory?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Your licensed Territory is determined by population, business potential, traffic patterns, proximity to major roads, demographics of the surrounding area, available parking, market penetration or other conditions important to the successful operation of your Business, as we deem appropriate and as identified in your Franchise Agreement. Your licensed Territory is determined by us once a location is chosen, and will not be altered even if there is a population increase or decrease. It will also not be affected by your sales volume. In certain cases, if you are in default we may change your Territory. Certain locations, such as major metropolitan areas may have smaller territories of densely populated areas. We must have consented to the location for your Business within your defined Territory in writing before you open for operation.
You must submit a separate application for each Franchised Business to be established by you. You must pay the fee for each additional acquisition mentioned in Item 5 and be in compliance with all of the terms and conditions of your existing Franchise Agreement. We must approve the location of any additional Burros & Fries Businesses as mentioned in Items 11 and 12 above.
If you are provided with a Territory, you are encouraged to directly advertise and market for guests to serve approved menu items, sell retail items and offer catering services within your Territory. You may be able to perform catering services in other geographical areas outside your Territory away from your facility under certain circumstances (as further described below). If the other geographical areas are unassigned, we have the right to sell or assign it, or part of it, at any time, without notice to you and you might not have the right of first refusal or option to buy the territory that was formally unassigned. You may serve guests and sell retail items to anyone who comes from anywhere so long as all such items are being sold from your Business. We, other franchisees and companyowned businesses are subject to the same restrictions and reserve the same right to serve guests and sell retail items to anyone who comes from anywhere without compensation to you. You are prohibited from soliciting and marketing
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, several factors can influence the size of a franchisee's territory. The FDD states that territories are not exclusive in some cases. In cases where a protected territory is awarded, the territory will include up to three (3) miles driven in any direction from the Franchise Business as defined by MapQuest or a similar mapping program. However, Burros Fries retains the right to adjust the territory size to account for population density and other considerations.
The specific factors that Burros Fries considers when determining territory size include population, business potential, traffic patterns, proximity to major roads, demographics of the surrounding area, available parking, and market penetration. The franchise agreement will identify the specific territory granted to the franchisee. Once a location is chosen, the territory will not be altered due to population changes or sales volume, although Burros Fries may change the territory if the franchisee defaults on the agreement. Major metropolitan areas may have smaller territories due to densely populated areas.
Prospective franchisees should understand that Burros Fries must provide written consent to the business location within the defined territory before the franchisee can open for operation. Franchisees are encouraged to advertise and market within their territory. However, franchisees are prohibited from engaging in target marketing within another franchisee's territory. This means that franchisees should focus their marketing efforts on their designated area and avoid directly soliciting business from customers in other territories. Franchisees should also be aware of the conditions under which they can perform catering services outside their territory, as these activities may be subject to certain restrictions and referrals to other franchisees or Burros Fries itself.