What is the geographic limit for a Burros Fries franchisee to perform services?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee is asked to conduct business at an off-site event (such as: community events, consumer shows, festivals, expos, etc.) or perform Services outside its Territory in which there is another franchise or company-owned business, Franchisee must immediately refer that request to the franchisee in that geographical area or directly to us. Franchisee must not conduct business at any off-site event or perform any Services outside its Territory if another franchise or company-owned business is operating in that area. If we (where there is a company-owned business) or the other franchise determines it is in the best interest of the person or business for Franchisee to conduct such off-site event or perform Services, then Franchise can immediately proceed. If there is not a Burros & Fries Business in that other area, then Franchisee can immediately conduct such off-site event and/or perform such Services, however Franchisee must be prepared to refer the off-site event or the person or business receiving Services to another franchisee when the unassigned area is purchased. We and other franchisees and company-owned businesses must refer off-site events, people and businesses that are within Franchisee's Territory to Franchisee and also reserve the same right to conduct off-site events and/or perform Services within Franchisee's Territory if it is determined, to be in the person's or businesses' best interest, by the franchisee of that territory.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, a franchisee's ability to perform services outside of their designated territory is restricted. If a franchisee is asked to conduct business at off-site events or perform services outside their territory where another Burros Fries franchise or company-owned business exists, the franchisee must immediately refer the request to the franchisee in that area or directly to Burros Fries. The franchisee cannot conduct business at any off-site event or perform services outside their territory if another franchise or company-owned business operates there.
However, if the other franchise or Burros Fries (in the case of a company-owned business) determines it is in the best interest of the person or business, the franchisee can proceed with the off-site event or services. If there isn't a Burros Fries business in that other area, the franchisee can immediately conduct such events or services, but must be ready to refer the event or the person/business to another franchisee when the unassigned area is purchased. Burros Fries, other franchisees, and company-owned businesses must refer off-site events, people, and businesses within a franchisee's territory to that franchisee. They also reserve the right to conduct off-site events or perform services within the franchisee's territory if it's deemed in the person's or business's best interest by the franchisee of that territory.
This policy ensures that franchisees primarily focus on their designated territory while also allowing for flexibility in serving customers and businesses outside their area under specific conditions and with proper referrals. It also protects the interests of existing franchisees and company-owned businesses by preventing encroachment on their territories, which is a common practice in franchising to maintain market stability and franchisee profitability.