Does the Burros Fries franchisee have to be 'qualified' to be offered the option to service a National Account?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Following the execution of a contract with or the acceptance of a bid by a National Account which contemplates the provision of Products or Services to one or more National Account locations within the Territory, we will, if Franchisee is qualified and conditioned upon the terms of this Agreement and any addendum, provide Franchisee the option to provide such Products and perform Services pursuant to the terms and conditions of the National Account contract or on such terms and conditions as we in our sole discretion determine;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, a franchisee must be qualified to be offered the option to provide products and perform services to a National Account. Burros Fries will offer the franchisee this option following the execution of a contract with the National Account, provided the franchisee is qualified and adheres to the terms of the Franchise Agreement and any related addendum.
The FDD defines a "National Account" as large businesses, national organizations (including non-profits), or government agencies with outlets in multiple territories. These entities manage buildings or common services in more than one location, and their presence extends beyond a single franchisee's territory. Burros Fries retains the exclusive right to negotiate and enter into agreements with National Accounts on behalf of itself, the franchisee, and other franchisees.
If a Burros Fries franchisee chooses not to serve a National Account or fails to respond within the specified timeframe, Burros Fries has the right to provide the products or services directly, or through another franchisee or affiliate. Burros Fries can also contract with a third party to fulfill the National Account's needs. The franchisee will not receive compensation for products or services provided by others under these circumstances. This arrangement does not violate the franchisee's territorial rights, even if the products or services are offered or performed within their territory.