If a Burros Fries franchisee is or becomes a partnership, what documentation must be furnished to the franchisor?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
ion. The foregoing shall be in addition to any other remedies we may have pursuant to this Agreement.
R. Additional Requirements for Corporate or other Entity Franchisees
If Franchisee is or becomes a corporation, limited liability company, limited liability partnership, general partnership or other organization or entity, the following requirements shall apply:
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- Franchisee shall confine its activities to the establishment and operation of the Business;
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- Franchisee's Certificate, Articles of Incorporation or Articles of Organization, Certificate of Formation, Shareholders Agreement, Operating Agreement, Partnership Agreement, Business Trust Agreement, and/or Bylaws (or comparable governing documents) shall at all times provide that its activities are confined exclusively to the operation of the Business and that the issuance, redemption, purchase for cancellation and transfer of voting stock, or other ownership interest therein, is restricted by the terms of this Agreement. Franchisee shall furnish us promptly upon request copies of Franchisee's Certificate of Formation, Articles of Incorporation, Bylaws, Operating Agreement, Partnership Agreement, Business Trust Agreement, Shareholders Agreement, and other governing documents, and any other documents we may reasonably request, and any amendments thereto, from time to time;
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Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, if a franchisee is or becomes a partnership, they must adhere to specific requirements and provide certain documents to Burros Fries. The franchisee's Partnership Agreement must stipulate that its activities are exclusively confined to operating the Burros Fries Business and that any transfer of ownership interests is restricted by the terms of the Franchise Agreement.
Burros Fries requires the franchisee to furnish copies of their Partnership Agreement and any amendments made to it. This allows Burros Fries to ensure that the partnership's governing documents align with the franchise agreement and that the business operations remain consistent with the brand's standards.
Additionally, the franchisee must maintain and provide a current list of all owners of record and beneficial owners within the partnership upon request. This transparency enables Burros Fries to keep track of who is involved in the ownership and management of the franchise, ensuring compliance with the franchise agreement's terms and conditions regarding ownership and control.