What are Burros Fries franchisees authorized to do when referring a prospect?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
you or any other franchisee violates it.
If you are asked to conduct off-site events (such as: community events, consumer shows, festivals, expos, etc.) to promote your Business or provide catering services in another geographical area in which there is another franchisee or company-owned business you must immediately refer that request to the franchisee in that geographical area or directly to us. If the other franchisee or company-owned business determines it in the best interest for you to conduct such off-site event or perform such catering services, then you can immediately proceed. If there is not a Burros & Fries Business in that geographical area then you can immediately conduct such off-site event or perform catering services, however you must be prepared to refer such off-site event or catering business to another franchisee when that unassigned area is purchased. If during the term of the Franchise Agreement, you are unable to promptly and properly provide services and/or products due to excessive work or other cause then you must refer that person or business to another franchisee in the System or to us. For any default of the Franchise Agreement, as an alternative to terminate, we may modify or completely eliminate any rights that you may have with respect to the protected status of your Territory, effective ten (10) days after delivery of written notice to you. In addition, we may modify or eliminate completely, the Territory (Franchise Agreement Sections 6, 12.H and 23.F)
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, franchisees are required to refer certain requests or business to other franchisees or to Burros Fries under specific circumstances. If a franchisee is asked to conduct off-site events or provide catering services in an area where another Burros Fries location exists, the franchisee must immediately refer the request to the franchisee in that area or directly to Burros Fries. However, if the other franchisee or Burros Fries determines it is beneficial for the franchisee to proceed with the event or catering, they can do so. If there isn't a Burros Fries Business in that geographical area then you can immediately conduct such off-site event or perform catering services, however you must be prepared to refer such off-site event or catering business to another franchisee when that unassigned area is purchased.
Additionally, if a franchisee is unable to promptly and properly provide services or products due to excessive workload or other reasons, they must refer the person or business to another franchisee in the Burros Fries system or to Burros Fries itself. This ensures that customers continue to receive service and that business opportunities are not lost due to a franchisee's limitations.
Burros Fries also encourages franchisees located in close proximity to each other (within a ten-mile radius) to develop referral relationships and advertising strategies. However, Burros Fries must be notified of all such arrangements. This suggests that while collaboration is encouraged, it needs to be transparent and approved by the franchisor.