Is a Burros Fries franchisee obligated to secure and maintain required licenses, permits, and certificates?
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. Franchisee agrees to sign and deliver to us, along with a signed copy of this Agreement, the attached Schedule 3 "Executive Order 13224 and Related Certifications."
Your Business is designed, constructed and is to be operated in compliance with all local, state and federal laws, including (without limitation) the American with Disabilities Act ("ADA").
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 to secure and maintain all necessary licenses, permits, and certificates for operating their Burros Fries business. This includes researching all applicable federal, state, and local laws and regulations. Burros Fries makes no guarantees about what specific licenses, permits, or authorizations will be required in the franchisee's area.
This obligation extends to operating the business in full compliance with all applicable laws, ordinances, and regulations. These regulations include, but are not limited to, fictitious name registrations, sales tax permits, fire clearances, safety, truth in advertising, occupational hazards, indoor air quality, health, non-discrimination in hiring and accessibility, worker's compensation, and unemployment insurance. Franchisees must also comply with consumer protection laws related to food preparation, handling, storage, and "Truth in Menu" requirements concerning menu item names, product content, labeling, and nutritional claims.
While Burros Fries will provide guidance to franchisees in their efforts to obtain the necessary licenses, permits, approvals, and inspections, the ultimate responsibility for obtaining and maintaining these items rests with the franchisee. This includes covering all associated out-of-pocket costs. Furthermore, the franchisee must open the business for operation within 24 months of the franchise agreement's effective date, which requires having obtained all necessary licenses and permits to sell products and perform services.