Are Burros Fries franchisees authorized to act as agents or brokers?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Any rights not expressly granted to the Franchisee are reserved to us. Such rights reserved to us include but are not limited to the following:
-
- Own and/or operate ourselves, and/or authorize others to own and/or operate:
a) Any kind of business in the Territory which is not substantially similar to a Burros & Fries Business, whether or not using the Marks and System and on any terms and conditions we deem appropriate; and
b) Any kind of business outside of the Territory, including, without limitation, Burros & Fries Businesses, whether or not using Burros & Fries Marks and System and on any terms and conditions we deem appropriate;
-
- Develop, distribute and sell Burros & Fries labeled and branded (or any other brand) products and kitchen equipment (if developed) to anyone located anywhere (including within the Territory, if applicable) using any channel of distribution other than the operation of a Burros & Fries Business in the Territory and on any terms and conditions we deem appropriate;
-
- Develop or become associated with concepts other than the Business franchised hereunder (including dual branding and/or other franchise systems), whether or not using the System and/or the Marks, and award franchises under such other concepts for businesses located and/or operating anywhere;
-
- Acquire, be acquired by, sell our assets, sell our stock, membership units, or partnership units to, merge, affiliate with or engage in any transaction with other businesses (whether competitive or not), with units located anywhere.
Such transactions may include (but are not limited to) arrangements involving competing outlets and brand conversions (to or from the Burros & Fries Marks and System).
Franchisee agrees to participate at its expense in any such conversion as instructed by us;
-
- We may choose in our Business Judgment (as defined in Section 21 of this Agreement) to advertise, offer and sell Products and/or provide Services through the Internet and other similar venues (no matter where the person is located) without paying any compensation to Franchisee.
The Internet is a channel of distribution reserved exclusively to us and Franchisee may not independently market on the Internet or conduct e-commerce, without our written consent; and
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, it is not explicitly stated whether Burros Fries franchisees are authorized to act as agents or brokers for the company. However, the FDD does state that any rights not expressly granted to the franchisee are reserved to the franchisor. This suggests that unless the Franchise Agreement specifically allows franchisees to act as agents or brokers, they do not have the authority to do so.
Item 22 of the Burros Fries Franchise Agreement outlines several rights that the franchisor reserves, including the right to operate businesses, develop products, and engage in transactions with other businesses. These reserved rights indicate that Burros Fries maintains control over various aspects of the business and its brand. The document also specifies that franchisees must operate and advertise the business under the name "Burros & Fries" unless otherwise authorized, further emphasizing the franchisor's control over branding and operations.
Prospective franchisees should carefully review the Franchise Agreement and consult with Burros Fries to clarify whether they are permitted to act as agents or brokers. Understanding the scope of their authorized activities is crucial for ensuring compliance with the franchise agreement and avoiding potential conflicts with the franchisor.