factual

Is a Burros Fries franchisee responsible for the cost of changes to their web page?

Burros_Fries Franchise · 2024 FDD

Answer from 2024 FDD Document

We will provide to Franchisee a Burros & Fries page housed within the corporate website that may include interactive functionality and portals online for additional training, advertising, operational and support materials. Franchisee may customize parts of the web page with our approval however the look of the web page must remain consistent as specified in the Operations Manual. Franchisee agrees and acknowledges that maintenance and any changes, edits or updates to the web page must be performed by us, our affiliates and/or approved vendors. Upon approval of Franchisee's request, which must be submitted in writing, Franchisee is responsible for the cost of such changes. Franchisee may neither establish nor use any Website or perform any type of promotion over the Internet without our prior written approval and if such approval is granted Franchisee must comply with our requirements regarding discussing, advertising or disseminating any information on a Website, regarding the Business as described in Section 6 of this Agreement. We shall own all copyright and other intellectual property rights to the web page, as well as the contents of the corporate website or any other Website upon expiration or termination of this Agreement as described in Section 24.E and this agreement constitutes a "work for hire." In the event that an arbitral panel or a court of competent jurisdiction holds that the customizations or contents are not works for hire, then the Franchisee agrees to assign all copyright and other intellectual property rights to the customizations to us. The term "all copyright and other intellectual property rights" shall include ownership rights in all media, whether now known or hereinafter invented, by all means, methods, and processes, whether now known or hereinafter invented, including interactive rights and rights to derivate works.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2024 FDD)

According to Burros Fries's 2024 Franchise Disclosure Document, franchisees may be responsible for the costs associated with changes to their web page. Burros Fries will provide a web page for each franchisee within the corporate website, which may include interactive features and online portals for training, advertising, and support materials. While franchisees can customize parts of their web page with Burros Fries's approval, the overall look must remain consistent with the standards outlined in the Operations Manual.

Specifically, the FDD states that any maintenance, changes, edits, or updates to the web page must be performed by Burros Fries, its affiliates, or approved vendors. If a franchisee requests changes in writing and receives approval from Burros Fries, the franchisee is responsible for covering the costs of those changes. This means that while Burros Fries maintains control over the web page's appearance and functionality, franchisees have the option to request modifications, but they must be prepared to pay for them if approved.

This arrangement allows Burros Fries to maintain brand consistency across all franchisee web pages while still providing some flexibility for individual customization. However, it also places the financial burden of web page changes on the franchisee, so prospective franchisees should carefully consider the potential costs of these changes when budgeting for their franchise. It is also important to note that franchisees are prohibited from establishing their own websites or engaging in any online promotion without prior written approval from Burros Fries, and they must adhere to Burros Fries's requirements regarding online advertising and information dissemination.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.