What are a Burros Fries franchisee's obligations upon termination or expiration of the franchise agreement regarding the use of names and marks?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Territory, effective ten (10) days after delivery of written notice to Franchisee.
24. FRANCHISEE'S OBLIGATIONS UPON TERMINATION OR EXPIRATION
A. Franchisee Shall Cease Using Names and Marks
Franchisee further agrees that, upon termination or expiration of this Agreement, Franchisee shall immediately and permanently cease to use, by advertising, or any manner whatsoever, any Confidential Information, methods, trade secrets, procedures, descriptions of Products and Services associated with us and the Names and Marks and any proprietary marks and distinctive forms, slogans, symbols, signage, logos or devices associated with the System. In particular, Franchisee shall cease to use, without limitation, all signage (this includes vehicles with graphics, if applicable), advertising materials, menus, stationery, forms and any other articles, which display the Names and Marks. Franchisee shall make or cause to be made, at its expense, changes directed by us in signage, vehicles (if applicable), building and structures so as to effectively distinguish the surviving business entity, if any, from itsformer appearance and from other existing Burros & Fries Businesses. Franchisee shall comply with the covenant not to compete and the agreement to maintain the confidentiality of proprietary information, as well as return all information that is considered to be Confidential Information under the terms and conditions of this Agreement back to us.
B. Franchisee Shall Cease Operating the Business & Refrain from Notifying Guests
Franchisee shall immediately cease to operate its Business and shall not thereafter, directly or indirectly, represent itself to the public or hold itself out as a present or former franchisee of ours.
In addition, Franchisee shall not give notice of termination or expiration of this Agreement to Franchisee's guests without our prior written consent.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee faces several obligations regarding the use of names and marks associated with the Burros Fries system. The franchisee must immediately and permanently cease using any confidential information, methods, trade secrets, procedures, and descriptions of products and services related to Burros Fries. This extends to all names, marks, proprietary marks, distinctive forms, slogans, symbols, signage, logos, or devices associated with the system.
Specifically, the franchisee must stop using all signage, including graphics on vehicles if applicable, advertising materials, menus, stationery, forms, and any other articles displaying the Burros Fries names and marks. The franchisee is responsible for making changes, at their own expense, to signage, vehicles, buildings, and structures as directed by Burros Fries to effectively differentiate the surviving business entity from its former appearance and from other existing Burros Fries businesses.
Furthermore, the franchisee must cease operating the business and cannot represent themselves as a current or former Burros Fries franchisee. They are also prohibited from notifying guests about the termination or expiration of the agreement without prior written consent from Burros Fries, as Burros Fries retains the sole right to notify guests in a manner they deem appropriate. All existing guest and account lists become the property of Burros Fries. These stipulations ensure that upon termination or expiration, the franchisee completely disassociates from the Burros Fries brand to protect the integrity and reputation of the franchise system.