When must a Burros Fries franchisee make funds available for withdrawal by electronic transfer?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
The System Advertising Fee is to be received by us on or before the fifth (5th) day of each month for the prior month's Gross Revenue (as defined above in Section 10.A). This fee will be deposited into our System Advertising Account (the "Fund") for ongoing technology or new product development (including recipes and menu items) or kitchen equipment development, and such national advertising or public relations programs as we, in our sole discretion, may deem appropriate to promote our mark. The Fund may also be used for local franchisee group advertising or marketing and Franchisee advisory council expenses; local, regional, national or international advertising or marketing; administration of advertising and marketing (including salaries, accounting, collection, legal and other costs), related expenses and any media (including media production costs) or agency costs. We will direct all such programs, and will have sole discretion over the creative concepts, materials, endorsements and media used in such programs, and the placement or allocation of such programs. We reserve the right to determine in our sole discretionthe composition of all geographic territories and market areas for the implementation and development of such programs. The Burros & Fries Restaurants owned by our affiliates may will contribu
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries' 2024 Franchise Disclosure Document, franchisees are required to submit the System Advertising Fee to the franchisor on or before the fifth day of each month. This payment covers the prior month's Gross Revenue. The funds are then deposited into the System Advertising Account, which Burros Fries uses for technology development, new product development, kitchen equipment development, and national advertising or public relations programs.
This means that a Burros Fries franchisee must ensure that the System Advertising Fee, calculated as a percentage of the previous month's gross revenue, is available for withdrawal by electronic transfer by the 5th of each month. Failing to meet this deadline could result in penalties or a breach of the franchise agreement.
Prospective franchisees should be aware of this ongoing financial obligation and factor it into their monthly budget and cash flow projections. Understanding the due dates and methods for remitting fees is crucial for maintaining a good standing with the Burros Fries franchisor and avoiding any potential disruptions to their business operations.