Is a Burros Fries franchisee expected to conduct an independent investigation of the Burros Fries business and system?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
nchisee agreesto indemnify us under Section 18 of this Agreement which includes any claims arising out of Franchisee's failure to perform its obligations as described above.
It is Franchisee's sole responsibility and absolute obligation to research all applicable federal, state and local laws and regulations governing the operation of a Burros & Fries Business. Franchisee must secure and maintain in force all required licenses, permits and certificates relating to the operation of its Business and must at all times operate it in full compliance with all applicable laws, ordinances and regulations (including without limitation, regulations relating to fictitious name registrations, sales tax permits, fire clearances, safety, truth in advertising, occupational hazards, indoor air quality, health, laws relating to non-discrimination in hiring and accessibility, worker's compensation and unemployment insurance). In addition, Franchisee must comply with consumer protection laws and regulations concerning food preparation, handling and storage, "Truth in Menu" concerning menu item names, product content, labeling and nutritional claims. We make no representations or assurances as to what inspections, licenses, permits, authorizations or otherwise will be required for Franchisee in the Franchisee's area in connection with its Business. It is Franchisee's sole responsibility to identify and obtain all licenses,
permits, certifications and authorizations necessary for operation. Franchisee agrees to maintain high standards of honesty, integrity, fair dealing and ethical conduct in all business activities.
Franchisee shall agree to comply and/or assist us in our compliance efforts, as applicable, with any and all laws, regulations, Executive Orders or otherwise relating to antiterrorist activities, including without limitation the U.S. Patriot Act, Executive Order 13224 and related U.S. Treasury and/or other regulations. In connection with such compliance efforts, Franchisee agrees not to enter into any prohibited transactions and to properly perform any currency reporting and other activities relating to the Franchise Business as may be required by law. Franchisee is solely responsible for ascertaining what actions must be taken by Franchisee to comply with all such laws, orders and/or regulations, and specifically acknowledge and agree that Franchisee's indemnification responsibilities as provided in Section 18 pertain to Franchisee's obligations hereunder.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, it is the franchisee's sole responsibility and absolute obligation to research all applicable federal, state, and local laws and regulations governing the operation of their Burros Fries Business. Burros Fries makes no representations or assurances about what inspections, licenses, permits, or authorizations will be required for the franchisee's area in connection with their Business. It is solely the franchisee's responsibility to identify and obtain all necessary licenses, permits, certifications, and authorizations for operation.
This means that prospective Burros Fries franchisees must conduct their own due diligence to understand the legal and regulatory landscape in their specific location. This includes researching and securing all required licenses, permits, and certifications needed to operate a Burros Fries restaurant. Franchisees must also stay informed about any changes to these regulations and ensure ongoing compliance.
This requirement is typical in franchising, as local regulations can vary significantly. By placing this responsibility on the franchisee, Burros Fries ensures that each location operates in compliance with all applicable laws. The franchisee also acknowledges that they have been advised to have the franchise agreement and all other documents reviewed by an attorney and that the franchisee and its owners have read, understood, had an opportunity to discuss and agreed to each provision of this agreement.