Can a Burros Fries franchisee relocate their business without prior written consent?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall not execute a lease or sublease for the Business, or make any modifications or amendments to the lease or sublease, without our prior written consent, which we may grant, condition or withhold in our Business Judgment. Franchisee will deliver to us a copy of any lease or sublease for our review at least ten (10) days before execution. Franchisee must deliver a copy of the signed lease or sublease to us within five (5) business days after it is signed. We do not offer legal services to Franchisee and Franchisee is encouraged to consult with independent legal counsel for a legal review of the lease. Franchisee shall ensure that the lease or sublease for the Business contains, in an addendum or otherwise, the following provisions which:
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- Permit Franchisee to operate a Burros & Fries Business in accordance with this Agreement and the Manuals;
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- Provide that the site will be used only for the operation of a Burros & Fries Business, and prohibit Franchisee from assigning or modifying any of Franchisee's lease rights, or extending the term without our prior written consent;
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- Require the lessor to concurrently provide us with a copy of any written notices of default to Franchisee under the lease and give us the right to cure any default if weso choose; within fifteen (15) days following the expiration of the Franchisee's cure period under the lease;
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- Provide us with a right to take assignment and possession of the Business, without the lessor's consent or any additional consideration. If we exercise this right and
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, a Burros Fries franchisee needs prior written consent from the company to make any modifications or amendments to their lease or sublease. This requirement ensures that Burros Fries maintains control over the location and operation of its franchises. The franchisee must submit any lease or sublease agreements for review at least ten days before signing and provide a copy of the signed document within five business days after execution.
This provision is designed to protect Burros Fries's interests by ensuring that the location meets their standards and that the lease terms align with the franchise agreement. The lease or sublease must include specific provisions that allow the franchisee to operate a Burros Fries business according to the agreement and manuals, restrict the site's use to only Burros Fries operations, and prevent the franchisee from assigning or modifying lease rights without prior written consent.
Additionally, the lease must require the lessor to provide Burros Fries with copies of any default notices and grant Burros Fries the right to cure any default within fifteen days after the franchisee's cure period expires. It also gives Burros Fries the right to take assignment and possession of the business without the lessor's consent. These measures ensure that Burros Fries can maintain control over the franchise location and continue operations even if the franchisee faces difficulties.
For a prospective Burros Fries franchisee, this means that site selection and lease negotiation are critical steps that require close collaboration with the franchisor. Failing to obtain prior written consent for lease modifications or relocation could result in a breach of the franchise agreement and potential termination of the franchise.