Are Burros Fries franchisees required to use specific disposables from approved vendors?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
tional programs, marketing programs and/or product promotions promulgated by us periodically.
I. Use Approved Products, Supplies, Kitchen Equipment, Vendors and Suppliers
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:
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- We have spent considerable time designing the decoration and outfitting of a Burros & Fries Business with specific kitchen equipment, furnishing, fixtures, décor items and signage. This is part of our trade dress. Franchisee must purchase such items from us and/or our affiliates or approved vendors as specified in the Operations Manual and Section 12.T of this Agreement.
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Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees must use approved products and supplies, including disposables, from approved vendors. Burros Fries has invested considerable time in developing the standards, processes, and methods used in the operation of a Burros & Fries Business.
This means a franchisee is required to purchase supplies like disposables and packaging materials from Burros Fries, its affiliates, or approved vendors. The FDD states that a franchisee is prohibited from purchasing or leasing products, supplies, kitchen equipment, and services from unapproved vendors without written approval from Burros Fries. Failure to comply with this requirement may result in the termination of the Franchise Agreement.
Burros Fries may consider factors such as price, quality, composition, performance, and the vendor's financial strength when approving vendors or suppliers. This ensures that the franchisee receives products that meet the franchisor's standards. Burros Fries will provide updates to approved Products and Services in addition to Manual specifications, marketing and operational updates as they become available; review advertising, product, supply, kitchen equipment, vendor and/or supplier approval requests.