For a Burros Fries franchise, how many additional terms can a franchisee renew the agreement for?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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, a franchisee has the option to renew their Franchise Agreement for up to two additional terms. Each of these renewal terms is for a period of ten years. However, this renewal option is contingent upon Burros Fries still offering franchises at the time of renewal.
To be eligible for renewal, the Burros Fries franchisee must provide written notice of their intent to renew the agreement. This notice must be given no more than twelve months and no less than six months before the end of the current term. Burros Fries will then respond to the franchisee's renewal notice within thirty days of receiving it, communicating via email or another written format.
Furthermore, the franchisee must be in full compliance with all terms and conditions of the Franchise Agreement, including any amendments or successor agreements, as well as any other agreements between the franchisee and Burros Fries. Any default under these agreements would disqualify the franchisee from renewing their term. This ensures that only franchisees in good standing are granted the opportunity to continue operating under the Burros Fries brand.