Does the Burros Fries franchisor assume liability for any debt incurred by the franchisee?

According to the 2024 Franchise Disclosure Document, Burros Fries does not assume liability for any debt incurred by the franchisee. In fact, the opposite is true: the franchisee assumes all costs, liability, expense, and responsibility for locating, obtaining, and developing a site for the Franchise Business. This includes equipping the Business at such premises. The franchisee is responsible for either buying or leasing the required real property and improvements.

Furthermore, if the Franchisee is a corporation, limited liability company, partnership or other entity, certain provisions of the Franchise Agreement also apply to the shareholders, members, partners or owners. The franchisor also requires that the franchisee obtain and maintain specific insurance coverage throughout the duration of the franchise agreement, listing Burros Fries as an additional insured on all insurance policies. This includes general liability insurance with minimum policy limits of $2,000,000 per occurrence and $4,000,000 aggregate, as well as property and casualty insurance with a minimum policy limit of $2,000,000 or an amount specified by the franchisor.

In addition, the Franchise Agreement includes an Individual Guaranty, which is used when the franchisee is a corporation, partnership, or other entity. Under this guaranty, the undersigned agree to personally and unconditionally guarantee the performance of Franchisee under the Franchise Agreement and to perform all obligations under this Agreement on default by Franchisee. The undersigned further agree to pay any judgment or award against Franchisee obtained by Franchisor. This means that the franchisor seeks to ensure that there is always a party responsible for the financial obligations of the franchise.