What happens if execution is levied against a Burros Fries franchisee's business or property?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
As between us and the Franchisee, the Franchisee shall bear the entire risk of any damage, loss, theft or destruction to the Business from any cause whatsoever or requisition of the Business by any governmental entity or the taking of title to the Business by eminent domain or otherwise (collectively, "Loss"). The Franchisee shall advise us in writing within ten (10) days of any such Loss. No such Loss shall relieve the Franchisee of the obligation to pay Royalty Fees and all other amounts owed hereunder. In the event of any such Loss, we, at our option, may: (a) if the Loss has not materially impaired the Business (in our reasonable Business Judgment), require that the Franchisee, upon our demand, place the Business in good condition and repair reasonably satisfactory to us as mentioned above; or (b) if the Loss has materially impaired the Business and it is substantially destroyed, (in our sole judgment), we may require the Franchisee to repair the existing Business or find an alternative location within the Territory within ninety (90) days or soonest possible timeframe according to Franchisee's lease. We may extend this period an additional thirty (30) days at our discretion and failure of Franchisee to comply may result in termination of this Agreement. Upon termination, the Franchisee must return to us the System (including
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
I am unable to provide information on what happens if execution is levied against a Burros Fries franchisee's business or property, according to the 2024 Franchise Disclosure Document. While Item 22 discusses various contractual obligations of the franchisee, including site selection, web page management, and obligations upon termination or expiration, it does not address the specific scenario of an execution levied against the franchisee's business or property.
Item 22 does outline the franchisee's responsibilities regarding potential losses to the business due to damage, loss, theft, destruction, or requisition by a governmental entity. In such events, the franchisee must notify Burros Fries in writing within ten days. The franchisee remains obligated to pay royalty fees and other amounts owed, regardless of the loss. Burros Fries has the option to require the franchisee to repair the business or find an alternative location, depending on the extent of the impairment. However, this section focuses on physical loss or damage rather than legal actions like levies.
To fully understand the implications of an execution levied against a Burros Fries franchise, prospective franchisees should directly ask the franchisor about this scenario. Specifically, they should inquire about any provisions in the Franchise Agreement that address the franchisor's rights and obligations, the franchisee's responsibilities, and potential remedies or consequences in such situations. Understanding these details is crucial for assessing the risks associated with the franchise and making informed decisions.