Must a Burros Fries franchisee lease all supplies from approved vendors?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
To insure the consistent high quality and uniformity of Products and Services provided by the Franchised Businesses, Franchisee must lease or purchase all products, supplies, kitchen equipment and services (as described above) for use in the operation of its Business, from us, our affiliates or approved vendors who demonstrate to our continuing satisfaction an ability to meet our standards and specifications.
We are not liable to Franchisee for any loss or damage, or deemed to be in breach of this Agreement, if we, our affiliates or approved vendors and/or suppliers cannot deliver, or cause to be delivered, Franchisee's order of products, supplies or kitchen equipment where such items are outof-stock or discontinued.
Franchisee is prohibited from purchasing or leasing products, supplies, kitchen equipment and services from unapproved vendors and/or suppliers who are not on our approved list without our written approval.
We shall approve or deny Franchisee's request, which approval is in our sole discretion, within thirty (30) days of receipt of Franchisee's written request.
Such approval or disapproval shall be made by email or any other form of written communication.
Failure of Franchisee to purchase such items from us, our affiliates or approved vendors and/or supplies and use such unapproved items in the operation of its Business may result in termination of this Agreement as specified in Section 23.C of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries' 2024 Franchise Disclosure Document, franchisees must lease or purchase all products, supplies, kitchen equipment, and services from Burros Fries, its affiliates, or approved vendors. This requirement ensures the consistent high quality and uniformity of products and services provided by the franchised businesses. Franchisees are prohibited from obtaining these items from unapproved vendors without written approval from Burros Fries.
To request approval for an unapproved vendor, a franchisee must submit a written request to Burros Fries. Burros Fries has the sole discretion to approve or deny the request within thirty days of receipt. The approval or disapproval will be communicated via email or other written form. Failure to purchase items from approved sources or using unapproved items may result in the termination of the Franchise Agreement.
Burros Fries may consider factors such as price, quality, composition, performance, accuracy of product claims, durability, safety, technical specifications, frequency of delivery, design, service maintenance programs, quality control, value, customer service strength, attention to complaints, litigation against the supplier, reputation, product recalls, and the supplier's financial strength when approving vendors. Burros Fries can also inspect the facilities of proposed vendors and test their products, with the franchisee, vendor, or supplier bearing the costs of inspection and testing. Burros Fries reserves the right to re-inspect facilities and retest products and can revoke approval if a vendor fails to meet their standards.
Burros Fries may derive income through license fees, promotional fees, advertising allowances, rebates, or other monies paid by approved vendors and/or suppliers. While the exact basis of these payments is not predetermined, Burros Fries has the discretion to use them as they determine. If franchisees are required to buy products, supplies, or kitchen equipment directly from Burros Fries, the price and quality will be comparable to similar items from other sources. Burros Fries may periodically add to, modify, or change approved products, supplies, kitchen equipment, vendors, and suppliers, and franchisees must promptly implement these changes at their own expense.