Must a Burros Fries franchisee execute a new agreement before the renewal term?
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 of ten years each, provided that Burros Fries is still offering franchises at that time. To exercise this option, the franchisee must meet certain conditions before the renewal can be granted.
Specifically, the franchisee must provide written notice of their election to renew not more than twelve months and not less than six months before the end of the current term. Burros Fries will then respond to the franchisee's notice within thirty days of receipt. Additionally, the franchisee must not be in default under any provision of the existing agreement, any amendments to it, or any other agreements between the franchisee and Burros Fries.
These conditions ensure that the franchisee has maintained a good standing with Burros Fries throughout the term of the agreement. By requiring advance notice, Burros Fries can adequately prepare for the renewal and assess the franchisee's compliance with the agreement's terms. Meeting these conditions is essential for a Burros Fries franchisee to successfully extend their franchise agreement for additional terms.