Must a Burros Fries franchisee purchase all supplies from approved vendors?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
e dress. Franchisee must purchase such items from us and/or our affiliates or approved vendors as specified in the Operations Manual and Section 12.T of this Agreement.
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- 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.
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- In approving any vendor or supplier we may consider factors such as: price, quality, composition, performance, accuracy of product claims, durability, safety, technical specifications, frequency of delivery, design, service maintenance programs, determination of quality control, value, customer service strength, prompt attention to complaints, litigation against the supplier, reputation of supplier, any product recalls instituted by the United States Consumer Product Safety Commission, the supplier's financial strength and capacity to supply franchisee's needs promptly, reliably, and cost effectively. All vendors and suppliers must be approved in writing by us and may be disapproved by us anytime thereafter. If Franchisee desires to lease or purchase unapproved equipment, products, supplies or services from unapproved vendors, Franchisee shall submit to us a written request for such 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. We shall have the right to require, as a condition of its approval and review, that its representatives are permitted to inspect the facilities of the proposed vendor and that the proposed item is delivered to us or our designee for testing. The cost of such inspection and testing shall be paid by Franchisee, vendor or supplier and we shall not be liable for damage to or for the return of any sample and Franchisee may be responsible for the product, vendor and equipment assessmentfee as described in Section 10.H of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees are required to purchase or lease all products, supplies, kitchen equipment, and services from Burros Fries, its affiliates, or approved vendors. This is to ensure the consistent high quality and uniformity of products and services provided by the franchised businesses.
The FDD specifies that franchisees are prohibited from purchasing or leasing these items from unapproved vendors or suppliers without written approval from Burros Fries. To request approval for a vendor, the franchisee must submit a written request, and Burros Fries has the sole discretion to approve or deny the request within thirty days. Failure to purchase items from approved sources may result in 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, reputation, product recalls, and the supplier's financial strength when approving vendors. Burros Fries also states that they have spent considerable time in developing the Products, Services, standards, processes, methods and technology used in the operation of a Burros & Fries Business. Franchisee is to use only approved products, supplies, kitchen equipment, vendors, suppliers and services that includes, but is not limited to: ingredients (such as dry goods, our spice packages, sauces, dressings, condiments, etc.), fresh produce, dairy products; beverage products (such as: tea, carbonated drinks, juices and specialty beverages), supplies (such as small wares, disposables, packaging materials, disposables and cooking supplies), any merchandise for sale (such as: shirts, hats, baby bibs, etc.), kitchen equipment (such as: refrigerators, freezers, etc. as described in Item 7), furnishing and fixtures, technology items (such as computers, POS system, sound system, etc.), software, printed menus, signage, uniforms, professional laundry services, merchant services, POS and technology support services and printed advertising materials necessary for the operation of the Business.
This requirement ensures that Burros Fries maintains control over the quality and consistency of its brand. While it limits the franchisee's choice of suppliers, it also aims to provide a reliable supply chain and protect the brand's reputation. Franchisees should be aware of these restrictions and factor them into their business planning.