What happens if a Burros Fries franchisee's required business license is suspended?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
nchisee agreesto indemnify us under Section 18 of this Agreement which includes any claims arising out of Franchisee's failure to perform its obligations as described above.
It is Franchisee's sole responsibility and absolute obligation to research all applicable federal, state and local laws and regulations governing the operation of a Burros & Fries Business. Franchisee must secure and maintain in force all required licenses, permits and certificates relating to the operation of its Business and must at all times operate it in full compliance with all applicable laws, ordinances and regulations (including without limitation, regulations relating to fictitious name registrations, sales tax permits, fire clearances, safety, truth in advertising, occupational hazards, indoor air quality, health, laws relating to non-discrimination in hiring and accessibility, worker's compensation and unemployment insurance). In addition, Franchisee must comply with consumer protection laws and regulations concerning food preparation, handling and storage, "Truth in Menu" concerning menu item names, product content, labeling and nutritional claims. We make no representations or assurances as to what inspections, licenses, permits, authorizations or otherwise will be required for Franchisee in the Franchisee's area in connection with its Business. It is Franchisee's sole responsibility to identify and obtain all licenses,
permits, certifications and authorizations necessary for operation. Franchisee agrees to maintain high standards of honesty, integrity, fair dealing and ethical conduct in all business activities.
Franchisee shall agree to comply and/or assist us in our compliance efforts, as applicable, with any and all laws, regulations, Executive Orders or otherwise relating to antiterrorist activities, including without limitation the U.S. Patriot Act, Executive Order 13224 and related U.S. Treasury and/or other regulations.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, it is the franchisee's responsibility to secure and maintain all required licenses, permits, and certificates to operate their Burros Fries business. The franchisee must operate in full compliance with all applicable laws, ordinances, and regulations. The FDD does not explicitly state what happens if a franchisee's license is suspended.
However, the document does state that the franchisee must forward copies of any notices, inspection reports, or other communication from any governmental entity indicating the franchisee's failure to meet or maintain governmental standards, or less than substantial compliance with any applicable law, rule, or regulation, to Burros Fries within five days of receipt. This suggests that Burros Fries closely monitors franchisee compliance and may take action if a franchisee fails to meet required standards.
Since the FDD does not specify the consequences of a suspended license, it is important for a prospective Burros Fries franchisee to ask the franchisor directly about the specific procedures and potential penalties in such a situation. Understanding the franchisor's policies on license suspension is crucial for assessing the risks and responsibilities associated with the franchise.