What happens if a Burros Fries franchisee dies or becomes disabled?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | A flat fee of $15,000 when you transfer your franchised business. If transferee came from our lead database, you may be required to pay the then-current fee to us plus any costs associated with applicable broker fees. | At the time the transferee signs the Franchise Agreement in effect | Payable to us when the Franchise Agreement is signed. |
| Resale Fee | Varies | On Demand | If you ask and we agree to assist you in finding a buyer for your Business, you pay us a fee to cover our costs and expenses, including time committed by our personnel. |
| Temporary | Actual Costs | On Demand | Upon death or disability, a manager who completed our training, must be employed to operate the Business. If not done, we can appoint a manager for up to 90 days, renewable up to one year. All expenses, including manager compensation, travel and living expenses will be charged against operating revenues. We also charge against those revenues, the amount of our expenses. |
| Management |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, in the event of a franchisee's death or disability, a manager who has completed Burros Fries's training must be employed to operate the business. This requirement ensures that the Burros Fries location continues to adhere to brand standards and operational procedures even in the franchisee's absence.
If the franchisee or their estate fails to employ a trained manager, Burros Fries has the right to appoint a manager to oversee the business operations. This appointed manager can serve for up to 90 days, with the possibility of renewing the appointment for up to one year. This provision allows Burros Fries to maintain control over the franchise and protect its brand integrity during a period of uncertainty.
All expenses associated with the appointed manager, including their compensation, travel, and living expenses, will be charged against the operating revenues of the Burros Fries business. Additionally, Burros Fries will charge its own expenses against those revenues. This means that the business's profits will be used to cover the costs of management and oversight during this transition period, which could impact the profitability for the franchisee's estate or family.