Where in the Burros Fries FDD can I find information about the term and renewal of the franchise agreement?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
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
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, Item 22, Section 7 covers the term and renewal of the franchise agreement. The standard franchise term for a Burros & Fries Business is ten years from the effective date of the agreement. However, Burros Fries reserves the right to adjust the term to align with the premise's lease, subject to the franchisee's approval. This means the initial length of your franchise could be shorter or longer depending on your specific lease terms.
The Burros Fries franchise agreement allows the franchisee the option to renew for up to two additional terms, each lasting ten years, provided that Burros Fries is still offering franchises at the time of renewal. To be eligible for renewal, the franchisee must provide written notice of their intent to renew between twelve and six months before the end of the current term. Burros Fries will then respond to the renewal notice within 30 days of receipt.
Furthermore, to qualify for renewal, the franchisee must not be in default of any terms within the franchise agreement, any amendments to it, or any other agreements between the franchisee and Burros Fries. The franchisee must also have consistently complied with all terms and conditions of these agreements throughout their duration. This ensures that only franchisees in good standing are granted the opportunity to continue operating their Burros Fries business beyond the initial term.