Are Burros Fries franchisees required to purchase proprietary software from Burros Fries, its affiliates, or approved suppliers?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
ers and merchant service providers.
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. Some of these specifications are contained in our Operations Manual and others will be set forth in periodic written notices to our franchisees. In most cases, the specifications involve confidential and proprietary information regarding proprietary and confidential information and the specifications will only be made available to a supplier who agrees to sign a confidentiality agreement with us. We develop these specifications either through our research and development staff or with a particular manufacturer and they may be modified periodically.
Our primary methods of communication with franchisees is through emails, phone, text and if available an intranet system provided to franchisees on our website (all of these "Communications"). You are responsible for knowing all of the information contained in the Communications and complying with any standards and specifications. We may establish and change the standards and specifications for the operation of your Business through our Communications.
All marketing and promotion of your Franchise by you in any medium must be conducted in a professional and dignified manner and must conform to our specified standards and requirements. You must submit samples of all advertising, marketing or promotional plans and materials that you desire to use to us for approval if such has not been prepared or previously approved by us. If you have a web page through our system, you may not use any marketing or promotional materials that we have disapproved. This includes any website promotion over the Internet to promote your Business. You must submit a request to us for any type of web references or promotions you wish to do in addition to any edits, changes or updates to your web page. Internet promotions, edits, changes or updates to your web page must be done by us, our affiliates or approved vendors with our consent and you are responsible for all costs. Our response to your request will be made within thirty (30) days after we receive it. We will notify you by email or any other form of written communication of our approval or disapproval. If we do not respond within such period, your request will automatically be deemed disapproved. You may not use any advertising, marketing or promotional materials that we have disapproved. You must not conduct any advertising without our written permission, in any social media such as Yelp, Twitter, Facebook, LinkedIn and others. You must also supervise your employees to assure they do not post any material on the Social Media sites or any internet sites, regarding us or the System whatsoever.
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 do not provide material benefits (for example renewal or additional franchises) to you based solely on your use of designated or approved sources. We do not belong or require you to belong to any purchasing or distribution cooperatives, although we retain the right to establish them and to require your membership therein.
When you open a location for your franchise under a lease, per the Franchise Agreement, you must submit the proposed lease to us for approval before it is signed. We have the option to require that the lease (i) be collaterally assigned to us by a collateral assignment agreement in a form and substance reasonably acceptable to us in order to secure performance of your liabilities and obligations to us or (ii) contain the following terms and conditions:
1.
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 required to use specific software for their business. Burros Fries maintains specifications for technology items, including computers, POS systems, and software, to be used for the interior and exterior of the business. Franchisees must adhere to the standards and specifications established by Burros Fries, which include those for technology items and software.
Burros Fries has the right to disapprove any product, piece of kitchen equipment, and/or supply sources that are not on their approved vendor list. If any product, piece of kitchen equipment, service, vendor, or supplier is not authorized by Burros Fries, franchisees are prohibited from using, offering, or selling it. If Burros Fries develops proprietary equipment or software in the future, franchisees must purchase such items from Burros Fries, its affiliates, or approved suppliers.
Burros Fries will provide franchisees with a written list of approved products, supplies, kitchen equipment, and services they can use and offer in their business, as well as a written list of approved vendors and/or suppliers to purchase and/or lease kitchen equipment, products, supplies, and services from during the initial training program. The FDD specifies that initial expenditures from Burros Fries, its affiliates, or approved vendors for items like technology and software will represent approximately 45%-55% of the franchisee's total initial purchases. During the operation of the business, required purchases from Burros Fries, its affiliates, or approved vendors are estimated to be approximately 90%-95% of the franchisee's total monthly purchases, excluding lease, royalties, or labor costs.