What is the initial term length of the Burros Fries Franchise Agreement?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise Agreement | Summary |
|---|---|---|
| a. Term of the Franchise Agreement. | FA – Section 7.A | FA – Ten (10) years, subject to agreed upon change to match the length of a premises lease. |
| b. Renewal or extension of the term. | FA – Section 7.B | FA – Up to two (2) additional terms of ten (10) years each, if you meet certain term requirements. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 46–49)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the initial term length of the Franchise Agreement is ten years. Specifically, the Franchise Agreement outlines in Section 7.A that the term is for ten years, but this is subject to change if both parties agree to match the length of the premises lease. This means that if the lease for the location is shorter or longer than ten years, Burros Fries may be willing to adjust the franchise term to align with the lease.
For a prospective Burros Fries franchisee, this is an important consideration when negotiating a lease. A shorter lease term might offer more flexibility but could also mean needing to renegotiate the franchise agreement sooner. Conversely, a longer lease provides stability but commits the franchisee for an extended period.
Additionally, the Franchise Agreement in Section 7.B allows for up to two additional terms of ten years each, provided certain requirements are met. This offers the potential for a long-term relationship with Burros Fries, assuming the franchisee operates the business successfully and complies with the terms of the agreement.