What happens if a Burros Fries franchisee uses an unapproved vendor?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
You cannot purchase unapproved products or supplies and/or lease or purchase unapproved kitchen equipment from any vendor and/or supplier that are not on our pre-approved list without written permission. We will provide you with: a written list of approved products, supplies, kitchen equipment and services you can use and offer in your Business; recommended procedures and strategies when purchasing products and supplies and leasing or purchasing kitchen equipment for your Business; and a written list of approved vendors and/or suppliers to purchase and/or lease kitchen equipment, products, supplies and services from during our initial training program. If we develop proprietary products or if we develop proprietary equipment or software in the future, you must purchase such items from us, our affiliates or approved suppliers.
We will enforce these requirements by unannounced on-site visits to your business. When we make other visits to businesses, such as to assist you, we may also take that opportunity to visibly inspect your inventory and determine if unauthorized products (including menu or retail items), kitchen equipment or services are being used, sold or offered. In addition, we expect to receive information from our other businesses or from guests of your Business reporting that unauthorized products (including menu or retail items), pieces of kitchen equipment or services are being used, sold or offered in the Business. You must permit us or our agents, at any reasonable time, to remove a reasonable number of products (including food or non-food items) or pieces of equipment from your Business free of charge for testing by us or by an independent laboratory, to determine whether the samples meet our then-current standards and specifications. Besides any other remedies we may have, we may require you to pay for the testing if we have not previously approved the supplier of the item or if the sample fails to conform to our specifications (see Item 6). In addition, to maintain the highest degree of quality and service, we reserve the right to charge you an additional fee of $1,000 if we inspect your Business and you do not pass the inspection for a second time in any two (2) year period. We reserve the right to take whatever action we deem necessary in our absolute and sole discretion to prevent you from using, selling or offering unauthorized products (including menu or retail items), supplies, kitchen equipment or services, including seeking injunctive relief or terminating your Franchise Agreement.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees are prohibited from purchasing unapproved products or supplies, or leasing or purchasing unapproved kitchen equipment from vendors or suppliers not on the pre-approved list without written permission. Burros Fries will provide a written list of approved products, supplies, kitchen equipment, and services, along with recommended procedures and strategies for purchasing and leasing, during the initial training program. If Burros Fries develops proprietary products, equipment, or software in the future, franchisees must purchase these items from Burros Fries, its affiliates, or approved suppliers.
Burros Fries enforces these requirements through unannounced on-site visits, during which they may inspect inventory to identify unauthorized products, kitchen equipment, or services. Information may also come from other businesses or customer reports. Franchisees must allow Burros Fries or its agents to remove products or equipment for testing, free of charge, to ensure compliance with standards and specifications. Franchisees may be required to pay for testing if the supplier hasn't been previously approved or if the sample fails to meet specifications.
Besides other remedies, Burros Fries may charge an additional fee of $1,000 if a franchisee fails a second inspection within a two-year period. Burros Fries reserves the right to take necessary action to prevent the use, sale, or offering of unauthorized items, including seeking injunctive relief or terminating the Franchise Agreement. This means a franchisee could face financial penalties, legal action, or even lose their franchise for non-compliance.