What is the name of the franchisor for Burros Fries, as stated in the Collateral Assignment of Lease?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
| Franchisee: | |
|---|---|
| Franchisor: Burros & Fries Franchise, Inc., a California corporation | |
| Date of this Collateral Assignment of Lease | , 20 |
| (the "Assignment"): | |
| The Franchisee, to effect various provisions of that certain Franchise Agreement dated by and between Franchisee and Franchisor (the "Franchise Agreement"), hereby collaterally Franchisor (subject to the terms and conditions below) all of Franchisee's right, title and interest in, to and | , 20 , assigns to |
| under that certain lease (the "Lease") | 20, |
| dated | |
| between Franchisee and, ("Landlord"), for | |
| that property commonly known as: (the "Premises"), | |
| a copy of which Lease is attached to this | |
| Assignment. |
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the franchisor listed in the Collateral Assignment of Lease is Burros & Fries Franchise, Inc., a California corporation. This entity is the party to which the franchisee assigns their rights, title, and interest in the lease for the property where the Burros Fries business operates. This assignment is collateral, meaning it serves as security for the franchisee's obligations under the Franchise Agreement.
This arrangement is a fairly standard practice in franchising, particularly for restaurant franchises where the location is critical to the business. By having the Collateral Assignment of Lease, Burros Fries aims to protect its interests in the location. If a franchisee defaults on their obligations under the Franchise Agreement, Burros Fries can step in and take over the lease, ensuring the continued operation of the business at that location.
For a prospective Burros Fries franchisee, this means they will be required to sign a Collateral Assignment of Lease as part of the franchise agreement. They should carefully review the terms of both the lease and the assignment to understand their obligations and the circumstances under which Burros Fries could take over the lease. It is also important to note that Burros Fries requires franchisees to include specific provisions in their lease agreements to protect the franchisor's interests, such as the right to cure defaults and take assignment of the business.