Does the failure of Burros Fries to exercise its option to purchase constitute a waiver of other provisions of the agreement?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
To enable us to determine whether we will exercise its option, Franchisee or its Owners, shall provide such information and documentation, including financial statements, as we may require (as noted below). In the event that we elect to purchase said Interest, closing on such purchase must occur within ninety (90) days from the date of notice to the Franchisee of the election to purchase said Interest by us. Failure of us to exercise the option afforded by this Section 22.C shall not constitute a waiver of any other provision of this Agreement, including all of the requirements of Section 22.B, with respect to a proposed transfer of any Interest. Any later change in the terms of any offer prior to closing shall constitute a new offer subject to the same rights of first refusal by us as in the case of an initial offer.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the failure of Burros Fries to exercise its option to purchase an interest in a franchise does not constitute a waiver of any other provision of the Franchise Agreement. This includes all the requirements regarding a proposed transfer of any interest.
Specifically, the FDD states that even if Burros Fries chooses not to buy a franchisee's interest when first offered, this doesn't mean they give up any other rights or requirements outlined in the agreement related to transferring ownership. This protects Burros Fries and ensures that all other terms of the agreement remain in effect, even if they initially decline to purchase the franchise interest.
Furthermore, any changes to the terms of an offer to purchase a franchise interest before the deal closes are considered a new offer. This new offer is subject to the same rights of first refusal by Burros Fries as the original offer. This clause prevents franchisees from altering the terms of a sale after Burros Fries has declined the initial offer, ensuring that Burros Fries retains the right to review and potentially purchase the franchise under any revised terms.