Can Burros Fries limit the number of approved vendors a franchisee can deal with?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
To insure the consistent high quality and uniformity of Products and Services provided by the Franchised Businesses, Franchisee must lease or purchase all products, supplies, kitchen equipment and services (as described above) for use in the operation of its Business, from us, our affiliates or approved vendors who demonstrate to our continuing satisfaction an ability to meet our standards and specifications.
We are not liable to Franchisee for any loss or damage, or deemed to be in breach of this Agreement, if we, our affiliates or approved vendors and/or suppliers cannot deliver, or cause to be delivered, Franchisee's order of products, supplies or kitchen equipment where such items are outof-stock or discontinued.
Franchisee is prohibited from purchasing or leasing products, supplies, kitchen equipment and services from unapproved vendors and/or suppliers who are not on our approved list without our written approval.
We shall approve or deny Franchisee's request, which approval is in our sole discretion, within thirty (30) days of receipt of Franchisee's written request.
Such approval or disapproval shall be made by email or any other form of written communication.
Failure of Franchisee to purchase such items from us, our affiliates or approved vendors and/or supplies and use such unapproved items in the operation of its Business may result in termination of this Agreement as specified in Section 23.C of this Agreement.
In approving any vendor or supplier we may consider factors such as: price, quality, composition, performance, accuracy of product claims, durability, safety, technical specifications, frequency of delivery, design, service maintenance programs, determination of quality control, value, customer service strength, prompt attention to complaints, litigation against the supplier, reputation of supplier, any product recalls instituted by the United States Consumer Product Safety Commission, the supplier's financial strength and capacity to supply franchisee's needs promptly, reliably, and cost effectively.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, Burros Fries has the right to limit the number of approved vendors from whom a franchisee can purchase products, supplies, kitchen equipment, and services. As a Burros Fries franchisee, you are required to source these items from Burros Fries, its affiliates, or approved vendors who meet the franchisor's standards and specifications.
The FDD states that franchisees are prohibited from purchasing or leasing products from unapproved vendors without written approval from Burros Fries. To request approval for a new vendor, a franchisee must submit a written request, and Burros Fries has the sole discretion to approve or deny the request within thirty days. Failure to use approved vendors may result in the termination of the Franchise Agreement.
Burros Fries considers various factors when approving vendors, including price, quality, composition, performance, product claim accuracy, durability, safety, technical specifications, delivery frequency, design, service maintenance programs, quality control, value, customer service, complaint handling, litigation history, supplier reputation, product recalls, financial strength, and the capacity to meet franchisee needs reliably and cost-effectively. This comprehensive evaluation process highlights Burros Fries's control over the supply chain and its focus on maintaining consistent standards across all franchised locations.