Are Burros Fries franchisees required to use specific POS systems for their business?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
debit Franchisee's account in an amount equal to (a) the fees transferred from Franchisee's account for the last reporting period for which
a report of the Business's Gross Revenue was provided to us as required hereunder or (b) the amount due based on information retrieved from our approved POS or computer system (whichever is greater).
E. Technology Fee & POS Support.
Franchisee will be required to use specific point of sale "POS" system and software for the operation of the Business and must use our approved vendors for such system and software. The POS software is specific to the food service industry. The overall cost of technology items including computers, POS system, tablets, software, copier, scanner, printer, modem, routers, sound system and surveillance system, and telephones ranges from $5,000 - $10,000. The current POS support fee is currently onehundred and thirty dollars ($130) to one-hundred and forty dollars ($140) per month per cash register. This fee is payable to our approved vendors.
The use of the software for the POS system may require Franchisee to sign a license agreement. It is Franchisee's responsibility to install, maintain and upgrade any hardware necessary to operate the POS system including networking and software at its own expense. We may, at our sole discretion, change such software requirements (including approved vendors) at any time and will provide Franchisee with ninety (90) days' written notice to implement such changes. Franchisee acknowledges that Franchisee must comply with such changes in technology requirements at its own
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees are required to use a specific point of sale (POS) system and software approved by Burros Fries for their business operations. Franchisees must also use Burros Fries's approved vendors for the POS system and software. The POS software is designed specifically for the food service industry.
The estimated cost for all technology items, including computers, the POS system, tablets, software, a copier, scanner, printer, modem, routers, a sound system, a surveillance system, and telephones, ranges from $5,000 to $10,000. Additionally, franchisees must pay a monthly POS support fee ranging from $130 to $140 per cash register to Burros Fries's approved vendors.
Franchisees may be required to sign a license agreement for the POS system software. They are responsible for the installation, maintenance, and upgrades of any hardware and software necessary to operate the POS system at their own expense. Burros Fries retains the right to change the software requirements and approved vendors, providing franchisees with 90 days' written notice to implement such changes at their own cost. Failure to comply with Burros Fries's technology requirements within the given timeframe may be considered a material breach of the Franchise Agreement.
Furthermore, Burros Fries can access data from the approved POS system to verify the business's gross revenue, ensuring accurate royalty payments. This reliance on a specific POS system allows Burros Fries to maintain consistency and control over operational data across all franchise locations.