What is the Initial Franchise Fee for a single area Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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The Initial Franchise Fee for a single area Franchise ("Initial Franchise Fee") is $35,000 for the Franchised Business in a protected area. The protected area of a Franchise is determined once a specific location is identified and approved by us. The Initial Franchise Fee is payment, in part, for expenses incurred by us in furnishing assistance and services to you as set forth in the Franchise Agreement and for costs incurred by us, including general sales and marketing expenses, training, legal, accounting, other professional fees, news bulletins and templates for advertising materials to support your Business, a comprehensive training program at our corporate headquarters or on-site for approximately fourteen (14) days, which includes using the Operations Manual and providing assistance and guidance at your location for either pre-opening or grand opening assistance. You must purchase and maintain an inventory of product, supplies and kitchen equipment from our affiliates or our approved vendors and/or suppliers (as described in Item 8). You will be provided with a list of our approved vendors and/or suppliers during training. You will be provided with a written list of approved products, supplies, kitchen equipment and services you are authorized to use, offer and sell.
The Initial Franchise Fee is paid in a lump sum at the time the Franchise Agreement is signed and is deemed fully earned and nonrefundable upon payment per the terms of the Franchise Agreement as applicable except if an initial franchisee fee deferral is require
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the initial franchise fee for a single area franchise is $35,000. This fee grants the franchisee the right to operate a Burros Fries business within a protected area, the specifics of which are determined once a location is identified and approved by Burros Fries.
The initial franchise fee covers expenses Burros Fries incurs while providing assistance and services to the franchisee, as outlined in the Franchise Agreement. These expenses include general sales and marketing, training, legal and accounting fees, professional fees, news bulletins, and advertising templates. The fee also includes a comprehensive training program, lasting approximately 14 days, at the corporate headquarters or on-site, utilizing the Operations Manual, and assistance during the pre-opening or grand opening phase.
The initial franchise fee is payable in a lump sum when the Franchise Agreement is signed. Once paid, the fee is considered fully earned and nonrefundable, except in cases where an initial franchisee fee deferral is required. This nonrefundable nature compensates Burros Fries for administrative costs and the lost opportunity to franchise others.