What is the geographic limit for providing services for a Burros Fries franchisee?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
his policy. Failure of Franchisee to refrain from Target Marketing, as described above, may result in termination of this Agreement as specified in Section 23.C.
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.
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 conduct business outside of their designated territory is subject to certain limitations. The standard protected territory for a Burros & Fries business is usually a radius of three miles from the business location. The exact territory is finalized once the actual business address is chosen.
A Burros Fries franchisee must refer any requests to conduct business at off-site events or perform services outside their territory, where another franchise or company-owned business exists, to the franchisee in that area or directly to Burros Fries. The franchisee cannot conduct business at off-site events or perform services outside their territory if another franchise or company-owned business operates in that area, unless the other franchise or Burros Fries determines it is in the best interest of the person or business for the franchisee to proceed. If no other Burros Fries exists in that area, the franchisee can proceed with such events or services but must be prepared to refer the business to another franchisee if the area is later assigned.
Burros Fries retains the right to offer and sell products or provide services through the Internet, regardless of location, without compensating the franchisee. The Internet is considered a distribution channel reserved exclusively to Burros Fries, and franchisees need written consent to independently market online or conduct e-commerce. These stipulations ensure that Burros Fries maintains control over its brand and service delivery, while also protecting the interests of individual franchisees within their defined territories.