Can a Burros Fries franchisee establish their own website without prior written approval?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
enefit only the Franchisee, and no other party is entitled to rely on, enforce, benefit from or obtain relief for breach of such obligations, either directly or by subrogation.
B. Web Page
We will provide to Franchisee a Burros & Fries page housed within the corporate website that may include interactive functionality and portals online for additional training, advertising, operational and support materials. Franchisee may customize parts of the web page with our approval however the look of the web page must remain consistent as specified in the Operations Manual. Franchisee agrees and acknowledges that maintenance and any changes, edits or updates to the web page must be performed by us, our affiliates and/or approved vendors. Upon approval of Franchisee's request, which must be submitted in writing, Franchisee is responsible for the cost of such changes. Franchisee may neither establish nor use any Website or perform any type of promotion over the Internet without our prior written approval and if such approval is granted Franchisee must comply with our requirements regarding discussing, advertising or disseminating any information on a Website, regarding the Business as described in Section 6 of this Agreement. We shall own all copyright and other intellectual property rights to the web page, as well as the contents of the corporate website or any other Website upon expiration or termination of this Agreement as described in Section 24.E and this agreement constitutes a "work for hire." In the event that an arbitral panel or a court of competent jurisdiction holds that the customizations or contents are not works for hire, then the Franchisee agrees to assign all copyright and other intellectual property rights to the customizations to us. The term "all copyright and other intellectual property rights" shall include ownership rights in all media, whether now known or hereinafter invented, by all means, methods, and processes, whether now known or hereinafter invented, including interactive rights and rights to derivate works.
C. Site Selection
Franchisee has the responsibility for selecting a site for its Business. If Franchisee is leasing a space for the Business, we must review and approve the lease prior to the lease being signed. If the Franchisee is purchasing property, we must review and approve the lease or purchase contract prior to it being signed. We will review and approve or disapprove the location of the Business and will not
unreasonably withhold our approval. We shall have the right, but not the obligation, to inspect the Business prior to opening.
We do not represent that we have any special expertise in selecting sites by our approval. Our approval of a site is not a representation or warranty that the Business will be profitable or that Franchisee's sales will attain any predetermined levels. Approval is intended only to indicate that the proposed site meets our minimum criteria for identifying sites. Franchisee agrees that our approval or disapproval of a proposed site does not impose any liability on us.
D. Layout and Design
We will assist the Franchisee in the review of the layout and design prior to the Franchisee signing a lease or sublease. We will provide Franchisee with guidelines of the layout and design however, Franchisee may need to hire its own architect, at its own expense, to create a complete set of drawings based on the facility size and local permitting requirements. We must review and approve Franchisee's architect's final plan. We do not represent that we have any special expertise in approving architectural plans. Our approval of Franchisee's architectural plan is not a representation or warranty that such plan will meet local permitting requirements or that such plan will not have to be revised or done over again in order to get final approval by local authorities. Approval is intended only to indicate that the Business is set up and meets our minimum criteria. Franchisee agrees that our approval or disapproval of Franchisee's architectural plans do not impose any liability on us. The costs of leasehold improvements, equipment, furniture, fixtures, technology items, signs and décor for finishing out the Business are the responsibility of the Franchisee. The Franchisee is responsible for all lease negotiations.
We will make available to Franchisee, at no charge, and advise Franchisee with regards to design plans, floor plans and mandatory specifications for the construction and layout of the Business which includes the exterior and interior design. Franchisee acknowledges that such specifications shall not contain the requirements of any federal, state or local law, code or regulation (including without limitation those concerning the Americans with Disabilities Act (the "ADA") or similar rules governing public accommodations or commercial facilities for persons with disabilities).
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries' 2024 Franchise Disclosure Document, franchisees cannot establish their own website without prior written approval from Burros Fries. Burros Fries will provide franchisees with a page on the corporate website, and franchisees can customize parts of this page with Burros Fries' approval, ensuring the look remains consistent with the Operations Manual. Any changes, edits, or updates to the webpage must be performed by Burros Fries, its affiliates, or approved vendors, with the franchisee responsible for the costs upon written approval of their request.
Burros Fries retains exclusive control over internet marketing and e-commerce, and franchisees are prohibited from independently engaging in these activities without written consent. This includes acquiring or establishing websites with domain names similar to "Burros & Fries" or other descriptive terms of the business. The term "website" encompasses internet home pages and other electronic sites, such as social networking platforms and blogs.
If Burros Fries approves a separate website for a franchisee, the franchisee must submit a sample of the proposed website, including its domain name and content, for prior written approval. Franchisees must adhere to Burros Fries' standards and specifications for websites, potentially including hyperlinks to Burros Fries' website. Franchisees and their employees are prohibited from posting information about Burros Fries, its members, or the system on any website without prior written approval, and must prevent employees from making disparaging statements. Burros Fries retains the right to pre-approve the franchisee's use of linking and framing between the franchisee's website and other websites, and can request the removal of any blogs, frames, links, or advertisements within five days.