Does the Burros Fries Franchise Agreement disclaim any representations made in the Franchise Disclosure Document furnished to the franchisee?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee acknowledges that any statements, oral or written, by us or our agents preceding the execution of this Agreement were for informational purposes only and do not constitute any representation or warranty by us. The only representations, warranties and obligations of us are those specifically set forth in the Franchise Disclosure Document and this Agreement. Franchisee must not rely on, and the parties do not intend to be bound by, any statement or representation not contained therein.
Franchisee acknowledges that we will not provide or designate locations for Franchisee, will not provide financial assistance to Franchisee and have made no representation that it will buy back from Franchisee any products, supplies, kitchen equipment, technology items (such as a point of sale ("POS") system, computers, sound system furnishings, fixtures or signage purchased by Franchisee in connection with the Business, except where we are otherwise required by law or regulation to buy back such items upon expiration or termination of this Agreement.
3. NO PROJECTED OR FORECASTED FRANCHISE SALES, PROFITS OR EARNINGS
We do not make Financial Performance Representations and have not included any such representations in the Franchise Disclosure Document.
Franchisee, and each Owner or other person related to Franchisee who executes this Agreement, acknowledges that neither we nor any officer, director, employee or agent of ours have made, and Franchisee has not received or relied upon, any express written or verbal information, representations, assurances, warranties, guarantees, inducements, promises or agreements concerning the actual, average, projected or forecasted franchise sales, revenues, profits, earnings, margins, or likelihood of success that Franchisee might expect to achieve from operating the Business (defined as "Financial Performance Representations"), except as may be in the Franchise Disclosure Document reviewed by Franchisee or its representatives.
4. RELATIONSHIP OF THE PARTIES
A. Franchisee is an Independent Contractor
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the Franchise Agreement explicitly states that any statements made before the agreement's execution are for informational purposes only and do not constitute a representation or warranty by Burros Fries. The document clarifies that the only representations, warranties, and obligations of Burros Fries are those specifically outlined in both the Franchise Disclosure Document and the Franchise Agreement itself. Franchisees are cautioned not to rely on any statement or representation not included in these documents, indicating a clear effort to limit Burros Fries's liability to what is formally documented.
This disclaimer means that prospective Burros Fries franchisees should carefully review all disclosures and terms within the Franchise Disclosure Document and the Franchise Agreement. Any promises, assurances, or understandings discussed verbally or in writing outside of these official documents should be viewed with skepticism. It is essential for potential franchisees to ensure that all critical aspects of the franchise offering are explicitly written into these documents before signing the agreement.
Burros Fries also makes it clear that they do not make Financial Performance Representations, nor are any such representations included in the Franchise Disclosure Document. Franchisees acknowledge that neither Burros Fries nor any of its agents have made any express written or verbal information, representations, assurances, warranties, guarantees, inducements, promises or agreements concerning the actual, average, projected or forecasted franchise sales, revenues, profits, earnings, margins, or likelihood of success. This acknowledgement reinforces the importance of conducting independent research and due diligence to assess the potential profitability and success of the franchise, rather than relying on any projected financial outcomes presented outside of the official documents.
Furthermore, the agreement emphasizes that the success of the Burros Fries business venture is speculative and dependent on the franchisee's personal efforts, with no guaranteed success. Franchisees confirm they have entered the agreement after an independent investigation of the opportunity, including reviewing a list of other Burros Fries franchises. This comprehensive disclaimer serves to protect Burros Fries from potential legal claims based on undocumented representations or guarantees of financial performance.