Where in the Burros Fries FDD can I find details about the term and renewal of the franchise agreement?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
7. TERM AND RENEWAL OF AGREEMENT
A. Term
The Franchise herein granted for a Burros & Fries Business, shall be for a term of ten (10) years from the date of execution and acceptance (the "Effective Date") of this Agreement by us and subject to earlier termination as herein provided. We reserve the right, with your approval, to change the term to match the premise's lease.
B. Renewal
Franchisee shall have the option to renew this Agreement for up to two (2) additional terms of ten (10) years each, provided we are still offering franchises at that time, and further subject to the following conditions, all of which must be met prior to renewal:
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- Franchisee shall give us written notice of its election to renew not more that twelve (12) months and not less than six (6) months prior to the end of the then current term. We will respond to Franchisee's written notice to renew no later than thirty (30) days after receipt of such notice by email or any other form of written communication;
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- Franchisee must not be in default under any provision of the Agreement, any amendment hereof or successor hereto, or any other agreement between us and Franchisee, and
Franchisee shall have complied with all the terms and conditions of all such agreements during the terms thereof;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, details regarding the term and renewal of the franchise agreement are found in Item 22, specifically under section 7, titled "TERM AND RENEWAL OF AGREEMENT".
The initial term of a Burros Fries franchise is ten years from the date the agreement is executed and accepted. However, Burros Fries reserves the right to modify the term length to align with the premise's lease, subject to the franchisee's approval. This means a franchisee's initial commitment could be shorter or longer depending on the lease terms negotiated for the restaurant location.
The Burros Fries franchisee has the option to renew the agreement for up to two additional terms, each lasting ten years, provided that Burros Fries is still offering franchises at the time of renewal. To renew, the franchisee must provide written notice of their intent to renew between six and twelve months before the end of the current term. Additionally, the franchisee must not be in default of any agreements with Burros Fries and must have complied with all terms and conditions of those agreements during their term. Burros Fries will respond to the franchisee's renewal notice within 30 days of receipt.