What is the Burros Fries franchisee required to do before transferring the franchise?

According to Burros Fries's 2024 Franchise Disclosure Document, a franchisee looking to transfer their franchise must adhere to specific requirements. The franchisee is obligated to submit copies of the draft Asset Purchase Agreement or Ownership Purchase Agreement, along with all draft Promissory Notes and Security Agreements, to the franchisor. This submission is required regardless of whether the financing is franchisee-financed or lender-financed.

Burros Fries retains the right to reject any proposed purchase of the assets of the franchised business or any type of ownership interest in the franchisee or franchised business. This rejection can occur if, in Burros Fries's sole opinion, the proposed transferee has taken on too much debt. This provision is designed to protect the brand and the network of franchisees by ensuring that new owners are financially stable and capable of managing the business effectively.

These requirements ensure that Burros Fries maintains control over who enters the franchise system and that all potential new franchisees meet the financial standards deemed necessary for success. It also protects the brand from potential damage caused by financially unstable operators. Franchisees should be aware of these requirements and plan accordingly when considering a transfer of their Burros Fries franchise.