If a Burros Fries franchisee has another separate business, how must it be conducted?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Any rights not expressly granted to the Franchisee are reserved to us. Such rights reserved to us include but are not limited to the following:
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- Own and/or operate ourselves, and/or authorize others to own and/or operate:
a) Any kind of business in the Territory which is not substantially similar to a Burros & Fries Business, whether or not using the Marks and System and on any terms and conditions we deem appropriate; and
b) Any kind of business outside of the Territory, including, without limitation, Burros & Fries Businesses, whether or not using Burros & Fries Marks and System and on any terms and conditions we deem appropriate;
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- Develop, distribute and sell Burros & Fries labeled and branded (or any other brand) products and kitchen equipment (if developed) to anyone located anywhere (including within the Territory, if applicable) using any channel of distribution other than the operation of a Burros & Fries Business in the Territory and on any terms and conditions we deem appropriate;
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- Develop or become associated with concepts other than the Business franchised hereunder (including dual branding and/or other franchise systems), whether or not using the System and/or the Marks, and award franchises under such other concepts for businesses located and/or operating anywhere;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, Burros Fries reserves the right to operate or authorize others to operate any kind of business that is not substantially similar to a Burros & Fries Business within the franchisee's territory. This includes businesses that do not use Burros Fries' marks and system, and on any terms and conditions Burros Fries deems appropriate.
Outside of the franchisee's territory, Burros Fries retains the right to operate any kind of business, including Burros Fries businesses, with or without using Burros Fries' marks and system, and on any terms and conditions they consider appropriate. This means a franchisee's other business interests are less restricted outside their designated territory.
Burros Fries also reserves the right to develop, distribute, and sell Burros Fries labeled and branded products and kitchen equipment to anyone, located anywhere, including within the franchisee's territory. This can be done through any channel of distribution other than the operation of a Burros Fries Business in the territory. Additionally, Burros Fries can develop or associate with other concepts, including dual branding or other franchise systems, and award franchises under these concepts for businesses located anywhere.