edge_case

Does the Burros Fries franchise agreement specify what constitutes 'damage to the premises' that excuses continuous operation?

Burros_Fries Franchise · 2024 FDD

Answer from 2024 FDD Document

During the term of this Agreement, the Accepted Location shall be used exclusively for the purpose of operating a Franchised Business and shall be located within the Territory. In the event the Business shall be damaged or destroyed by fire or other casualty, or be required to be repaired, Franchisee shall commence the required repair of the Business within thirty (30) days from the date of such casualty or notice of such governmental requirement (or such lesser period as shall be designated by such governmental requirement), and shall complete all required repairs as soon as possible thereafter, in continuity, but in no event later than ninety (90) days from the date of such casualty or requirement of such governmental notice. The minimum acceptable appearance for the refurbished Business will be that which existed just prior to the casualty; however, every effort should be made to have the refurbished Business include the then-current image, design and specifications of a Burros & Fries Business.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2024 FDD)

According to the 2024 Burros Fries Franchise Disclosure Document, the franchise agreement addresses the scenario where the business premises are damaged or destroyed. Specifically, it mentions 'fire or other casualty' as potential causes that would trigger the need for repair. The agreement also includes circumstances where governmental requirements necessitate repairs.

In the event of such damage, the Burros Fries franchisee is obligated to begin the repair process within 30 days from the date of the incident or notice of governmental requirement, or within a shorter period if mandated by governmental regulations. All repairs must be completed as quickly as possible, but no later than 90 days from the date of the casualty or governmental notice.

The minimum acceptable appearance for the refurbished Burros Fries business should match what existed before the damage. However, the franchise agreement encourages franchisees to incorporate the most current image, design, and specifications of a Burros Fries business during the refurbishment, suggesting an opportunity to update the location's look and feel.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.