Does Burros Fries have any liability to the franchisee if a Mark is modified or discontinued?

According to Burros Fries's 2024 Franchise Disclosure Document, Burros Fries has no liability to the franchisee if it becomes advisable to modify or discontinue use of any Mark. Burros Fries has the sole discretion to modify or discontinue any Mark and/or use one or more additional or substitute trademarks or service marks. The franchisee must comply with Burros Fries's directions within a reasonable time after notice.

In connection with the use of a new or modified Mark, the franchisee may be required to remove existing signs from their Business and to purchase and install new signs at their own expense. This means that if Burros Fries decides to change its branding, logo, or other trademarks, franchisees will bear the financial burden of updating their signage and marketing materials to reflect the new branding.

This lack of liability is a significant risk for prospective Burros Fries franchisees. It is common in franchising for franchisors to update their branding over time to stay relevant or to address legal challenges. However, it is less common for the franchisee to bear the entire cost of these changes. Prospective franchisees should carefully consider this potential expense and factor it into their financial projections. They may also want to negotiate with Burros Fries to share the costs of rebranding or to provide financial assistance to franchisees in such situations.