Does the Burros Fries Franchise Agreement require the franchisee to acknowledge they made an independent investigation of the Burros Fries opportunity?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISEE ACKNOWLEDGES AND AGREES THAT THE SUCCESS OF THE BUSINESS VENTURE CONTEMPLATED TO BE UNDERTAKEN BY FRANCHISEE AND ITS OWNERS IS SPECULATIVE AND WILL BE DEPENDENT ON PERSONAL EFFORTS AND SUCCESS IS NOT GUARANTEED. FRANCHISEE AND ITS OWNERS ACKNOWLEDGE AND REPRESENT THAT IT HAS ENTERED INTO THIS AGREEMENT AND MADE AN INVESTMENT ONLY AFTER MAKING AN INDEPENDENT INVESTIGATION OF THE OPPORTUNITY, INCLUDING HAVING RECEIVED A LIST WITH THE FRANCHISE DISCLOSURE DOCUMENT OF OTHER CURRENTLY AND PREVIOUSLY OPERATED BURROS & FRIES FRANCHISES, IF ANY AT THAT TIME.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the Franchise Agreement includes an acknowledgement that the franchisee has conducted an independent investigation of the Burros Fries franchise opportunity. The agreement states that the franchisee is entering into the agreement and making an investment only after this independent investigation.
This acknowledgement also confirms that the franchisee has received a list with the Franchise Disclosure Document of other currently and previously operated Burros Fries franchises, if any existed at that time. This is a standard practice in franchising, intended to ensure that franchisees are not relying solely on the franchisor's representations and have done their own due diligence.
By signing the Franchise Agreement, the franchisee confirms they have made an informed decision based on their own assessment of the risks and rewards. This acknowledgement is intended to protect Burros Fries from future claims that the franchisee was misled or did not understand the nature of the investment.