Is a Burros Fries franchisee allowed to conduct business from locations other than the Accepted Location?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
tate the terms of the applicable territory (a separate Franchise Agreement is required for each additional Business as defined in Section 9.D of this Agreement).
Franchisee must operate its Business within the specific Territory as identified in this Section VI. Franchisee may not open a Business at any other location other than the Accepted Location that has been set forth in this Agreement or made a part hereof by an addendum attached to this Agreement. Franchisee
may accept business, service guests and sell Products to anyone who comes from anywhere so long as the Products are being sold from the Accepted Location within its Territory. However, Franchisee can only provide Services within its Territory. Franchisee may perform Services outside its Territory, away from its facility (as described below). We, company-owned locations, other franchisees reserve the same right to sell Products and serve anyone who comes from anywhere. Franchisee is prohibited from selling Products through any alternative channels of distribution (such as Websites as defined below) without our written approval. If Franchisee is granted permission to sell Products through an alternative channel of distribution, per our written approval, Franchisee may sell Products to anyone from anywhere without compensation to another franchisee or company-owned business. Our response to Franchisee's request will be made by email or any other form of written communication within thirty (30) days after we receive it. Approval may be revoked in our sole discretion.
Franchisee is not restricted as to the geographic area into which Franchisee may attract guests for its Business and Franchisee is encouraged to directly advertise and market within its Territory however, Franchisee cannot perform any target marketing ("Target Marketing") into any other territory of another franchisee or company-owned business.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees are generally restricted to operating their business from the Accepted Location specified in their Franchise Agreement. The FDD states that a Burros Fries franchisee "may not open a Business at any other location other than the Accepted Location that has been set forth in this Agreement or made a part hereof by an addendum attached to this Agreement."
However, the FDD outlines exceptions for off-site events. If a Burros Fries franchisee is asked to conduct business at an off-site event, such as community events, consumer shows, festivals, or expos, or perform services outside their territory where another franchise or company-owned business exists, they must first refer the request to the franchisee in that area or directly to Burros Fries. The franchisee cannot proceed with the off-site event or services if another franchise or company-owned business operates in that area, unless the other franchise or Burros Fries determines it is in the best interest of the person or business for the franchisee to conduct the event or services.
If there is no Burros Fries business in the area, the franchisee can proceed with the off-site event or services but must be prepared to refer the event or the person/business receiving services to another franchisee when the unassigned area is purchased. Burros Fries and other franchisees/company-owned businesses must refer off-site events, people, and businesses within a franchisee's territory to that franchisee. They also reserve the right to conduct off-site events and perform services within the franchisee's territory if it is determined to be in the person's or business's best interest by the franchisee of that territory. Additionally, the franchisee shall use the Names and Marks only in connection with the operation of the Business and in advertising for the Business conducted at or from the Franchisee's web page and Accepted Location.