Are Burros Fries franchisees required to purchase proprietary equipment from Burros Fries, its affiliates, or approved suppliers?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
For a Burros & Fries Business, you are obligated to purchase and/or lease kitchen equipment, furniture and fixtures, technology items (as described above) software, signage, uniforms and an inventory of products and supplies for the operation of your Business. It is estimated that all your initial expenditures from us, our affiliates or the vendors that we specify and/or approve that meet our standards and specifications will represent approximately 45%-55% of your total initial purchases. It is anticipated that during the operation of your Business, required purchases from us, our affiliates or the vendors that we specify or approve (not including your lease, royalties or labor costs) are estimated to be approximately 90%-95% of your total monthly purchases in the continuing operation of your Business (this depends on the size of your Business the amount of inventory you purchase and sales volume).
We may offer or designate others to offer certain products, supplies, kitchen equipment or services and we may become approved suppliers or the only approved supplier(s) for these and other products, supplies, kitchen equipment and services. The products, supplies, kitchen equipment and services include: ingredients ( for any proprietary product we may have,, 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), kitchen equipment (such as: refrigerators, freezers, etc. as described in Item 7), furnishing and fixtures, technology items (such as computers and POS system) software, printed menus, signage, uniforms, professional laundry services, merchant services, printed advertising materials. You cannot purchase unapproved products or supplies and/or lease or purchase unapproved kitchen equipment from any vendor and/or supplier that are not on our pre-approved list without written permission. We will provide you with: a written list of approved products, supplies, kitchen equipment and services you can use and offer in your Business; recommended procedures and strategies when purchasing products and supplies and leasing or purchasing kitchen equipment for your Business; and a written list of approved vendors and/or suppliers to purchase and/or lease kitchen equipment, products, supplies and services from during our initial training program. If we develop proprietary products or if we develop proprietary equipment or software in the future, you must purchase such items from us, our affiliates or approved suppliers.
To maintain uniform quality standards, all products, kitchen equipment, services, printed menus, signage, advertising, trademark usage, trade dress, uniforms and other supplies and services you use to operate the Franchised Business must meet our standards and specifications.
We maintain specifications for the construction and build out of your Business, leasehold improvements, furnishings and fixtures, kitchen equipment, technology items (such as computers, POS system, etc.), software, printed menus, signage and décor to be used for the interior and exterior of your Business. You may not install or permit to be installed on the Business premises any fixtures, furnishings, equipment, décor items, signs, games, vending machines or other items without our written consent or that do not comply with our specifications. We have the right to disapprove any product, piece of kitchen equipment and/or supply sources that are not on our approved vendor list. If any product, piece of kitchen equipment, service, vendor or supplier is not authorized by us, you are prohibited
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees are obligated to purchase or lease kitchen equipment, among other items, for the operation of their business. Initial expenditures from Burros Fries, its affiliates, or approved vendors are estimated to represent approximately 45%-55% of the total initial purchases. During the ongoing operation of the business, required purchases from Burros Fries, its affiliates, or specified/approved vendors are estimated to be approximately 90%-95% of total monthly purchases, excluding lease, royalties, or labor costs. These percentages can vary based on the size of the business, inventory, and sales volume.
Burros Fries may offer or designate specific suppliers for certain products, supplies, kitchen equipment, and services, potentially becoming the sole approved supplier. Franchisees cannot purchase unapproved products or lease/purchase unapproved kitchen equipment from vendors not on the pre-approved list without written permission. Burros Fries will provide a written list of approved items and vendors during the initial training program. If Burros Fries develops proprietary products, equipment, or software in the future, franchisees must purchase these items from Burros Fries, its affiliates, or approved suppliers.
To maintain uniform quality standards, all products, kitchen equipment, services, printed menus, signage, and other supplies must meet Burros Fries's standards and specifications. Burros Fries maintains specifications for the construction, build-out, leasehold improvements, furnishings, fixtures, kitchen equipment, technology items, software, printed menus, signage, and décor. Franchisees cannot install any items that do not comply with these specifications without written consent. Burros Fries has the right to disapprove any product, piece of kitchen equipment, or supply source not on the approved vendor list, and franchisees are prohibited from using unapproved items.
Burros Fries may profit from markups on products, supplies, or services it supplies to franchisees and may also receive revenue through license fees, promotional fees, advertising allowances, or rebates from approved suppliers. The FDD indicates that the prices and quality of products bought directly from Burros Fries will be comparable to those from other sources. Burros Fries communicates standards and specifications through emails, phone calls, texts, and an intranet system on their website, and franchisees are responsible for complying with these standards.