What happens if Burros Fries does not approve the first site selected by the franchisee?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
otiate the lease for your Business. You must select the site for your Business within the protected territory provided in the Franchise Agreement. We currently do not own the site and lease it back to you; however, we retain the rights in the future to do so. You may not sign a lease for the site (or contract to purchase the premises, if applicable) in which you wish to operate your Business until you have obtained our written approval. Additionally, you must not invest any money for the site in which you have not received our written approval. We must accept the site if we feel in our total discretion that it meets or exceeds our standards, but our acceptance does not ensure that your Business will be profitable at the approved location. If we do not approve the site, you will be given a second opportunity to locate a site. If we do not approve the second site, we may terminate the Franchise. The factors that we consider in acceptance of the site include: population density, demographics, traffic patterns, convenience, adequate parking, safety, zoning ordinances, neighborhood and physical characteristics of the premises such as size and layout. We evaluate each proposed site and accept or reject each one on a case-by-case basis and will notify you by email or any other form of written communication of our acceptance or rejection of any proposed site within thirty (30) days after we receive your request
(Franchise Agreement, Sections 12.S and 20.C).
Neither we nor any of our employees have special expertise in selecting sites; we make no representations that your Business will be profitable or successful by being located at the approved site. Any approval is intended only to indicate that the proposed site meets our minimum criteria based upon our general business experience.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–38)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, if the company does not approve the initial site selected by the franchisee, the franchisee will be given a second chance to find a suitable location. However, if Burros Fries does not approve the second site either, they reserve the right to terminate the franchise agreement.
The FDD outlines several factors that Burros Fries considers when evaluating a potential site. These include population density, demographics, traffic patterns, convenience, adequate parking, safety, zoning ordinances, and the physical characteristics of the premises, such as size and layout. The company evaluates each proposed site on a case-by-case basis.
Burros Fries aims to notify the franchisee of their decision regarding site approval within thirty days of receiving the request, communicating via email or other written means. It is important to note that the company's acceptance of a site does not guarantee the profitability of the Burros Fries business at that location. The document also states that neither Burros Fries nor its employees have special expertise in selecting sites, and they make no representations about the business's potential success based on the approved location.