For a Burros Fries franchise, who is responsible for selecting the site for the business?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee assumes all costs, liability, expense, and responsibility for locating, obtaining and developing a site for the Franchise Business to be established under the Franchise Agreement and for equipping the Business at such premises. A typical Burros & Fries Business has approximately 2,500- 3,000 square feet of space. The space must be enclosed and separate from other businesses with its own locking door. Franchisee may buy or lease the required real property and improvements from any source and on terms approved by us in writing. Franchisee may not sign a lease (or a contract to purchase the premises, if applicable) for the Business until Franchisee has obtained our written approval. Franchisee must not invest any monies for a site in which Franchisee wishes to open a Business until Franchisee has obtained our written approval for the site which will be made by email or any other form of written communication. On the execution of any lease for the Franchise Business, Franchisee will deliver to us a copy of the executed lease and an option to assume the lease executed by the lessor in favor of us in a form acceptable to us. All improvements to the Business must be approved by us.
FRANCHISEE ACKNOWLEDGES THAT OUR ACCEPTANCE OF A PROSPECTIVE SITE AND THE RENDERING OF ASSISTANCE IN THE SELECTION OF A SITE DOES NOT CONSTITUTE A REPRESENTATION, PROMISE, WARRANTY, OR GUARANTEE BY US THAT A BURROS & FRIES FRANCHISE OPERATED AT THAT SITE WILL BE PROFITABLE OR OTHERWISE SUCCESSFUL.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the franchisee is primarily responsible for selecting the site for their Burros Fries Business. However, this selection is not entirely independent, as Burros Fries maintains certain approval rights over the site.
The franchisee bears the costs and responsibilities associated with finding, securing, and developing the location. A typical Burros & Fries Business requires approximately 2,500-3,000 square feet of enclosed space, separate from other businesses, with its own locking door. The franchisee can either buy or lease the property, but any lease or purchase contract must receive written approval from Burros Fries before it is finalized. The franchisee is cautioned against investing any money in a site before obtaining this written approval.
Burros Fries's approval process includes reviewing the location to ensure it meets their standards. While Burros Fries may offer assistance in site selection, the FDD explicitly states that their acceptance of a site does not guarantee the profitability or success of the franchise at that location. The franchisee is also responsible for providing Burros Fries with a copy of the executed lease and an option for Burros Fries to assume the lease if necessary. All improvements to the Business must be approved by Burros Fries.
This arrangement is fairly typical in franchising, where the franchisee usually handles the initial site selection, but the franchisor retains approval rights to maintain brand consistency and ensure the location meets certain criteria. Prospective franchisees should carefully consider the site selection criteria and approval process, and understand that the ultimate success of the location rests on their own due diligence and business acumen.