Is a Burros Fries franchisee required to provide copies of all merchant account printouts received from the Franchisee's merchant account banking provider?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Franchisee's profit and loss statement, payroll records, certification or records of Gross Revenue, vendor summary reports and report of account receivables for the week, day, month or period reported; and/or
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- Copies of any and all receipts and contracts with updated location information in any format we specify;
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- Copies of all invoices for purchases of all products, supplies and kitchen equipment;
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- Copies of Franchisee's most recent sales tax return;
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- Copies of all inspections for the Business from governmental agencies;
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- Copies of all merchant account printouts received from the Franchisee's merchant account banking provider (i.e. records of credit and debit card transactions);
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- Copies of all bank deposits, and bank deposit records made by the Franchisee; and
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- A complete list of all guests and contact information (including but not limited to all: email addresses, physical addresses and telephone numbers) who have filed a complaint (internally, with governmental agencies or with third parties such as the Better Business Bureau) or sought any type of refund during the preceding month, by the fifth (5th) day of each month.
Franchisee acknowledges and agrees that we, at all times during the term of this Agreement and after termination, expiration or cancellation of this Agreement, have the right to access (electronically or otherwise) all Business Records of the Franchise Business. We may use, transfer, copy or analyze such Business Records as we determine in our sole discretion to be in the best interest of the System. For purposes of this Agreement, "Business Records" means all records, documents, insurance policies, databases and the like (whether in print, electronic or other form), including all names, addresses, phone numbers, email addresses, contracts, financing arrangements, vendor records and all other records contained in databases created and maintained by Franchisee pertaining to the operation of the Business, including but not limited to records of employees, guests, vendors and other professionals related to the Business.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, franchisees are required to provide copies of all merchant account printouts received from their merchant account banking provider. These printouts include records of credit and debit card transactions. This requirement is part of the broader obligation for franchisees to maintain and provide access to various business records.
Burros Fries retains the right to access all business records of the franchise, whether electronically or otherwise, during the term of the agreement and even after its termination, expiration, or cancellation. These business records encompass a wide range of documents, including profit and loss statements, payroll records, gross revenue certifications, vendor summary reports, accounts receivable reports, receipts, contracts, invoices for purchases, sales tax returns, inspection reports, merchant account printouts, bank deposits, and guest complaint lists.
This access allows Burros Fries to use, transfer, copy, or analyze these records as they deem necessary for the benefit of the Burros Fries system. For a prospective franchisee, this means maintaining meticulous records and being prepared to share them with the franchisor regularly. This level of oversight is typical in franchising, allowing the franchisor to monitor compliance, assess performance, and protect the brand's integrity.
The franchisee should ensure they understand the full scope of required business records and the frequency with which they must be provided to Burros Fries. Maintaining organized and accessible records is crucial for a smooth relationship with the franchisor and for the overall success of the Burros Fries franchise.