Can Burros Fries grant other franchises or licenses for the Names and Marks, in addition to those already granted?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Any rights not expressly granted to the Franchisee are reserved to us. Such rights reserved to us include but are not limited to the following:
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- Own and/or operate ourselves, and/or authorize others to own and/or operate:
a) Any kind of business in the Territory which is not substantially similar to a Burros & Fries Business, whether or not using the Marks and System and on any terms and conditions we deem appropriate; and
b) Any kind of business outside of the Territory, including, without limitation, Burros & Fries Businesses, whether or not using Burros & Fries Marks and System and on any terms and conditions we deem appropriate;
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- Develop, distribute and sell Burros & Fries labeled and branded (or any other brand) products and kitchen equipment (if developed) to anyone located anywhere (including within the Territory, if applicable) using any channel of distribution other than the operation of a Burros & Fries Business in the Territory and on any terms and conditions we deem appropriate;
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- Develop or become associated with concepts other than the Business franchised hereunder (including dual branding and/or other franchise systems), whether or not using the System and/or the Marks, and award franchises under such other concepts for businesses located and/or operating anywhere;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, Burros Fries retains specific rights regarding the operation of other businesses and the use of its Names and Marks. Burros Fries reserves the right to own and operate, or authorize others to own and operate, any kind of business outside of the franchisee's territory, including other Burros Fries businesses, whether or not using the Burros Fries Marks and System. These operations can be under any terms and conditions that Burros Fries deems appropriate. This means Burros Fries can grant additional franchises or licenses outside your territory.
Burros Fries also reserves the right to develop or become associated with concepts other than the franchised business, including dual branding and other franchise systems, and award franchises under such other concepts for businesses located and/or operating anywhere. This indicates that Burros Fries is not restricted from introducing new franchise concepts or partnering with existing ones, even if they utilize similar systems or marks.
These reserved rights highlight that a Burros Fries franchisee's rights are limited to the specific franchise agreement and do not extend to preventing Burros Fries from expanding or diversifying its business through other channels or concepts. A prospective franchisee should be aware that Burros Fries retains considerable control over its brand and system, and can operate or license other businesses, potentially even in competition with existing franchisees, provided they are outside the franchisee's protected territory and/or under a different concept.