factual

For a Burros Fries franchise, is disclosing discoveries and ideas to the franchisor a franchisee obligation?

Burros_Fries Franchise · 2024 FDD

Answer from 2024 FDD Document

P. Disclose Discoveries and Ideas to Franchisor

Franchisee shall promptly disclose to us all products, equipment, discoveries, concepts, methods, techniques, recipes, formulas, processes, photographs, video presentations, promotions, operational procedures, inventions or ideas, whether patentable or not, relating to our business, which are conceived or made by Franchisee or any Owner, agent, employee or independent contractor of Franchisee solely or jointly with others, during the term of this Agreement, whether or not our facilities, materials, or personnel are utilized in the conception or making of such discoveries or ideas. Franchisee hereby acknowledges and agrees that all such products, equipment, discoveries, concepts, methods, techniques, recipes, formulas, processes, photographs, video presentation, promotions, operational procedures, inventions or ideas are the exclusive property of us, and that we shall have no obligation to compensate the Franchisee for any such discovery or idea. However, as a matter of corporate policy, we may, in our sole discretion, create an incentive program to reward Franchisee, its officers, directors, managers, members, partners or shareholders for any such new product, equipment, discovery, concept, method, technique, recipe, formula, process or improvement that we implement throughout the System. Franchisee, its officers, directors, managers, members, partners or shareholders agree to execute all documents deemed reasonably necessary by us to assign all such patent, trade secret, trademark, and copyright rights in any Franchisee discovery or idea to us. The Franchisee, its officers, directors, agents and employees agree to execute any and all documents deemed reasonably necessary by us to carry out such assignment. The term "all copyright and intellectual property rights" shall mean all means, methods, and process, by all media whether now known or hereinafter invested, including complete and entire interactive rights and rights to derivative works. The purpose of this clause is to ensure that ideas for improvements to the System that may be generated by franchisees within the System will be distributed to the other franchisees as a benefit of belonging to the System. The Franchisee agrees to execute all documents that we deem reasonably necessary to carry out such transfer of intellectual property rights to us.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2024 FDD)

According to the 2024 Burros Fries Franchise Disclosure Document, franchisees are obligated to disclose any products, equipment, discoveries, concepts, methods, techniques, recipes, formulas, processes, photographs, video presentations, promotions, operational procedures, inventions, or ideas related to the Burros Fries business that they conceive or create during the term of the agreement. This includes anything created by the franchisee, their owners, agents, employees, or independent contractors, whether working alone or with others. This obligation applies regardless of whether Burros Fries' facilities, materials, or personnel were used in the creation of these discoveries or ideas.

The FDD states that all such discoveries and ideas become the exclusive property of Burros Fries. While Burros Fries is not obligated to compensate the franchisee for these contributions, they may, at their discretion, establish an incentive program to reward franchisees for innovations that are implemented throughout the Burros Fries system. Franchisees are required to sign documents that assign all patent, trade secret, trademark, and copyright rights in any discovery or idea to Burros Fries.

This clause ensures that any improvements to the Burros Fries system generated by franchisees are shared across the entire franchise network, benefiting all franchisees. Franchisees must execute all necessary documents to transfer these intellectual property rights to Burros Fries. This requirement is designed to foster innovation and continuous improvement within the Burros Fries franchise system, with the potential for recognition and rewards for contributing franchisees.

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.