Is a Burros Fries licensed Territory altered if there is a population increase?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Your licensed Territory is determined by population, business potential, traffic patterns, proximity to major roads, demographics of the surrounding area, available parking, market penetration or other conditions important to the successful operation of your Business, as we deem appropriate and as identified in your Franchise Agreement. Your licensed Territory is determined by us once a location is chosen, and will not be altered even if there is a population increase or decrease. It will also not be affected by your sales volume. In certain cases, if you are in default we may change your Territory. Certain locations, such as major metropolitan areas may have smaller territories of densely populated areas. We must have consented to the location for your Business within your defined Territory in writing before you open for operation.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, a licensed territory's boundaries will not change due to population increases or decreases. The FDD states that the territory is determined once a location is chosen and will not be altered even if there is a population increase or decrease. However, Burros Fries may change your territory if you are in default of the franchise agreement.
Burros Fries determines the territory based on factors such as population, business potential, traffic patterns, proximity to major roads, demographics, available parking, and market penetration. These factors are assessed when a location is initially chosen for the franchise. The size of the territory can vary, with major metropolitan areas potentially having smaller territories in densely populated areas.
This policy provides stability for franchisees, as their territory is not subject to change based on population fluctuations. However, it also means that a franchisee may not benefit directly from a population increase within their territory, as the boundaries will remain fixed unless the franchisee defaults on the agreement. Prospective franchisees should carefully consider the initial territory assessment and its potential for growth, as this will be the basis for their exclusive operating area.