Must a Burros Fries franchisee purchase all kitchen equipment 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 the 2024 Burros Fries Franchise Disclosure Document, franchisees must purchase or lease all kitchen equipment from Burros Fries, its affiliates, or approved vendors. These vendors must demonstrate the ability to meet Burros Fries' standards and specifications. Franchisees are prohibited from acquiring these items from unapproved sources without written consent from Burros Fries, which Burros Fries can approve or deny within 30 days of a written request. Failure to comply with this requirement may result in the termination of the Franchise Agreement.
Burros Fries may derive income through fees, allowances, rebates, or other monies paid by approved vendors or suppliers. Burros Fries retains the right to add, modify, or change the approved products, supplies, kitchen equipment, vendors, and suppliers periodically. Franchisees must promptly accept and implement these changes at their own expense.
Burros Fries may establish strategic alliances or preferred vendor programs with national or regionally known suppliers, potentially limiting the number of approved vendors. Franchisees must also inspect all kitchen equipment upon receipt and may reject non-conforming items, returning them to the manufacturer within three business days of authorization. Burros Fries does not provide warranties regarding any vendor equipment, products, or supplies.