What is the Burros Fries franchisee's obligation regarding the operation of technology items?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee acknowledges that we have spent considerable time in developing the Products, Services, standards, processes, methods and technology used in the operation of a Burros & Fries Business. Accordingly, Franchisee acknowledges that Franchisee is to use only approved products, supplies, kitchen equipment, vendors, suppliers and services that includes, but is not limited to: ingredients (such as dry goods, our spice packages, sauces, dressings, condiments, etc.), fresh produce, dairy products; beverage products (such as: tea, carbonated drinks, juices and specialty beverages), supplies (such as small wares, disposables, packaging materials, disposables and cooking supplies), any merchandise for sale (such as: shirts, hats, baby bibs, etc.), kitchen equipment (such as: refrigerators, freezers, etc. as described in Item 7), furnishing and fixtures, technology items (such as computers, POS system, sound system, etc.), software, printed menus, signage, uniforms, professional laundry services, merchant services, POS and technology support services and printed advertising materials necessary for the operation of the Business. We may derive income through license fees, promotional fees, advertising allowances, rebates or other monies paid by approved vendors and/or suppliers. We do not know the precise basis of these payments because we have never previously collected them but if we collect such payments we have the discretion to use them as we determine. If we require Franchisee to buy from us, products, supplies or kitchen equipment the price and quality will be comparable to similar products, supplies and kitchen equipment from other sources Franchisee agreesthat we may periodically and upon written notice, add to, modify or change such approved products, supplies, kitchen equipment, vendors and suppliers and there is no limit in our right do so. Franchisee promises to promptly accept and implement, in the operation of its Business, all such additions, modifications and changes at Franchisees expense. In addition, Franchisee acknowledgesthat:
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, franchisees must use only approved technology items, such as computers, POS (Point of Sale) systems, and sound systems. These items must be purchased from Burros Fries, its affiliates, or approved vendors. Burros Fries may receive income from these approved vendors through license fees, promotional fees, advertising allowances, or rebates.
Burros Fries retains the right to modify or change the approved products, supplies, kitchen equipment, vendors, and suppliers, and franchisees must promptly implement these changes at their own expense. This ensures uniformity and quality across all franchised businesses. Franchisees are prohibited from purchasing or leasing technology items from unapproved vendors without written approval from Burros Fries, which is granted at Burros Fries's sole discretion within 30 days of a written request.
Failure to comply with the approved vendor requirement for technology items may result in the termination of the Franchise Agreement. Burros Fries considers various factors when approving vendors, including price, quality, technical specifications, service maintenance programs, and the vendor's financial strength. This stringent control over technology and vendor selection allows Burros Fries to maintain consistency and standards throughout its franchise system.