What happens if the Burros Fries franchisee does not comply with all the terms and provisions of the agreement?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
nd other fees for either the remainder of the term of this Agreement and to all other applicable remedies (as described in Section 24.H).
F. Territory Alteration as an Alternative to Termination
If Franchisee is in default of the Franchise Agreement, as an alternative to termination, we may modify or completely eliminate any rights that Franchisee may have with respect to exclusivity in the Territory, effective ten (10) days after delivery of written notice to Franchisee.
24. FRANCHISEE'S OBLIGATIONS UPON TERMINATION OR EXPIRATION
A. Franchisee Shall Cease Using Names and Marks
Franchisee further agrees that, upon termination or expiration of this Agreement, Franchisee shall immediately and permanently cease to use, by advertising, or any manner whatsoever, any Confidential Information, methods, trade secrets, procedures, descriptions of Products and Services associated with us and the Names and Marks and any proprietary marks and distinctive forms, slogans, symbols, signage, logos or devices associated with the System. In particular, Franchisee shall cease to use, without limitation, all signage (this includes vehicles with graphics, if applicable), advertising materials, menus, stationery, forms and any other articles, which display the Names and Marks. Franchisee shall make or cause to be made, at its expense, changes directed by us in signage, vehicles (if applicable), building and structures so as to effectively distinguish the surviving business entity, if any, from itsformer appearance and from other existing Burros & Fries Businesses. Franchisee shall comply with the covenant not to compete and the agreement to maintain the confidentiality of proprietary information, as well as return all information that is considered to be Confidential Information under the terms and conditions of this Agreement back to us.
B. Franchisee Shall Cease Operating the Business & Refrain from Notifying Guests
Franchisee shall immediately cease to operate its Business and shall not thereafter, directly or indirectly, represent itself to the public or hold itself out as a present or former franchisee of ours.
In addition, Franchisee shall not give notice of termination or expiration of this Agreement to Franchisee's guests without our prior written consent.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, if a franchisee defaults on the Franchise Agreement, Burros Fries may choose to modify or completely eliminate any exclusive territory rights the franchisee may have. This change would take effect ten days after the franchisee receives written notice.
Upon termination or expiration of the agreement, the franchisee must immediately stop using any confidential information, trade secrets, or materials associated with Burros Fries, including names and marks, advertising, menus, and signage. The franchisee is responsible for changing the signage, vehicles, and building to distinguish it from a Burros Fries business. The franchisee must also comply with non-compete and confidentiality agreements and return all confidential information to Burros Fries.
The franchisee must immediately cease operating the business and cannot represent themselves as a current or former Burros Fries franchisee. The franchisee cannot notify guests of the termination or expiration of the agreement without prior written consent from Burros Fries, who has the sole right to notify guests. All guest and account lists become the property of Burros Fries.