What is the geographic limit for off-site events for a Burros Fries franchisee?
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.
If during the term of this Agreement, Franchisee is unable to promptly and properly provide Products or Services to any person or business due to excessive work or other cause; then Franchisee must immediately refer that person or business to another franchise, company-owned business or to us. Failure of Franchisee to: (i) refrain from Target Marketing and/or (ii) refer off-site events and/or person or businesses seeking Services as described herein, will result in us having the right to terminate this Agreement as specified in Section 23.C. For any default of this Agreement which triggers our ability to terminate, then as an alternative to termination, we will have the right, in our sole discretion, to modify or completely eliminate any rights Franchisee may have with respect to the protected area status of the Territory, effective ten (10) days after delivery of written notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, a franchisee must refer any requests to conduct business at off-site events or perform services outside of their territory to the franchisee in that geographical area, or directly to Burros Fries. A franchisee cannot conduct business at any off-site event outside their territory if another franchise or company-owned business operates in that area.
However, if Burros Fries (where a company-owned business exists) or the other franchisee determines it is in the best interest for the franchisee to conduct the off-site event or perform services, the franchisee can proceed. If there is no Burros Fries business in that other area, the franchisee can immediately conduct the off-site event or perform services, but 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.
Burros Fries, other franchisees, and company-owned businesses must refer off-site events, people, and businesses within the franchisee's territory to the franchisee. They also reserve the right to conduct off-site events or perform services within the franchisee's territory if it is determined to be in the person's or business's best interest by the franchisee of that territory. Failure to comply with these referral guidelines can result in termination of the agreement or modification of the franchisee's protected territory rights.