If Burros Fries requires franchisees to buy from them, will the price be comparable to other sources?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
If we require Franchisee to buy from us, products, supplies or kitchen equipment the price and quality will be comparable to similar products, supplies and kitchen equipment from other sources Franchisee agreesthat we may periodically and upon written notice, add to, modify or change such approved products, supplies, kitchen equipment, vendors and suppliers and there is no limit in our right do so. Franchisee promises to promptly accept and implement, in the operation of its Business, all such additions, modifications and changes at Franchisees expense.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, if Burros Fries requires franchisees to purchase products, supplies, or kitchen equipment directly from them, the price and quality will be comparable to similar items available from other sources. This indicates that while franchisees may be obligated to buy certain items from Burros Fries, the pricing should remain competitive with the broader market.
This requirement extends to a wide range of items necessary for operating the Burros Fries business, including ingredients, supplies, kitchen equipment, merchandise, technology items, and printed materials. Burros Fries retains the right to modify or change the approved products, supplies, kitchen equipment, vendors, and suppliers periodically with written notice, and franchisees are obligated to implement these changes at their own expense.
While the FDD states that prices will be comparable, it's important for prospective franchisees to independently verify this by comparing prices with alternative suppliers whenever possible. Additionally, franchisees should be aware that Burros Fries may receive income from approved vendors through various fees, which could potentially influence the selection of required suppliers.