If Burros Fries approves a site, does this ensure that the Burros Fries Business will be profitable at the approved location?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
We must accept the site if we feel in our total discretion that it meets or exceeds our standards, but our acceptance does not ensure that your Business will be profitable at the approved location. If we do not approve the site, you will be given a second opportunity to locate a site. If we do not approve the second site, we may terminate the Franchise. The factors that we consider in acceptance of the site include: population density, demographics, traffic patterns, convenience, adequate parking, safety, zoning ordinances, neighborhood and physical characteristics of the premises such as size and layout. We evaluate each proposed site and accept or reject each one on a case-by-case basis and will notify you by email or any other form of written communication of our acceptance or rejection of any proposed site within thirty (30) days after we receive your request
(Franchise Agreement, Sections 12.S and 20.C).
Neither we nor any of our employees have special expertise in selecting sites; we make no representations that your Business will be profitable or successful by being located at the approved site. Any approval is intended only to indicate that the proposed site meets our minimum criteria based upon our general business experience.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–38)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, site approval by Burros Fries does not guarantee the profitability of the franchise at that location. While Burros Fries provides written guidelines for site selection and must approve the site, this approval is based on their assessment of whether the site meets or exceeds their standards. Factors considered include population density, demographics, traffic patterns, convenience, parking, safety, zoning, and the physical characteristics of the premises.
The FDD emphasizes that neither Burros Fries nor its employees have special expertise in selecting sites, and they make no representations about the profitability or success of the business at the approved site. The approval only indicates that the proposed site meets the minimum criteria based on Burros Fries's general business experience.
This means that while Burros Fries evaluates potential locations based on certain criteria, franchisees should not rely solely on their approval as a guarantee of financial success. Prospective franchisees must conduct their own due diligence and market research to assess the viability of the location and the potential for profitability. Franchisees also bear the responsibility of negotiating the lease and ensuring compliance with local laws and regulations.