Does the National Account provision apply to Non-Traditional Locations for Burros Fries?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
- e) Neither the direct provision by us (or a franchisee, affiliate or agent of ours) of Products or Services to National Accounts as authorized in (i) above, nor if we contract with another party to provide such Products and perform Services as authorized in (ii) above, shall constitute a violation of Section 6 of this Agreement relating to the Franchisee's Territory, even if such Products and/or Services are offered or performed from a location within the Territory or Non-Traditional Location.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the National Account program does apply to Non-Traditional Locations. The document states that the franchisor has the exclusive right to negotiate agreements to provide products and perform services to National Accounts, including locations within the franchisee's territory or Non-Traditional Locations. This means that even if a franchisee has a designated territory, Burros Fries can still serve National Accounts through other channels, including Non-Traditional Locations, without violating the franchisee's territorial rights.
If a National Account contract includes locations within a franchisee's territory, Burros Fries will offer the franchisee the option to fulfill the contract, assuming the franchisee is qualified and meets the terms of the agreement. However, the franchisor retains the right to provide these services directly or through another franchisee, affiliate, or third party. The franchisee is not entitled to compensation for products or services provided by others under the National Account program.
This provision allows Burros Fries to pursue large-scale partnerships with national organizations, regardless of individual franchise territories. For a prospective franchisee, this means that while they may have a protected territory, National Account business within that territory may be handled separately by Burros Fries. Franchisees should inquire about the criteria for qualifying to serve National Accounts and the potential impact of this program on their business.