What obligations of the Burros Fries franchisee remain in effect after the termination or expiration of the franchise agreement?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Territory, effective ten (10) days after delivery of written notice to Franchisee.
24. FRANCHISEE'S OBLIGATIONS UPON TERMINATION OR EXPIRATION
A. Franchisee Shall Cease Using Names and Marks
Franchisee further agrees that, upon termination or expiration of this Agreement, Franchisee shall immediately and permanently cease to use, by advertising, or any manner whatsoever, any Confidential Information, methods, trade secrets, procedures, descriptions of Products and Services associated with us and the Names and Marks and any proprietary marks and distinctive forms, slogans, symbols, signage, logos or devices associated with the System. In particular, Franchisee shall cease to use, without limitation, all signage (this includes vehicles with graphics, if applicable), advertising materials, menus, stationery, forms and any other articles, which display the Names and Marks. Franchisee shall make or cause to be made, at its expense, changes directed by us in signage, vehicles (if applicable), building and structures so as to effectively distinguish the surviving business entity, if any, from itsformer appearance and from other existing Burros & Fries Businesses. Franchisee shall comply with the covenant not to compete and the agreement to maintain the confidentiality of proprietary information, as well as return all information that is considered to be Confidential Information under the terms and conditions of this Agreement back to us.
B. Franchisee Shall Cease Operating the Business & Refrain from Notifying Guests
Franchisee shall immediately cease to operate its Business and shall not thereafter, directly or indirectly, represent itself to the public or hold itself out as a present or former franchisee of ours.
In addition, Franchisee shall not give notice of termination or expiration of this Agreement to Franchisee's guests without our prior written consent. We shall have the sole right to notify all of Franchisee's guests of the termination or expiration of this Agreement at the time and manner we determine to be most appropriate. All existing guest and account lists of the Franchisee shall be our property.
Franchisee shall assist us in transferring such lists to us upon termination or expiration of this Agreement at such times and in the manner we require.
Franchisee must immediately tender all new or used inventory of our Proprietary Products, décor, signage, uniforms, apparel, promotional, advertising, marketing materials and/or anything that displays our Marksin addition to all Confidential Information to us and/or our designated affiliates or destroy, if notified by us in writing to do so, all inventory of such items in a timely manner as in accordance with the terms of the Operations Manual and as specified in Section 24.G of this Agreement.
C. Franchisee May Not Adopt Confusingly Similar Names and Marks
Franchisee agrees, in the event it continues to operate or subsequently begins to operate any other business, not to use any reproduction, counterfeit, copy or colorable imitation of the Names and Marks, either in connection with such other business or in the promotion thereof, which is likely to cause confusion, mistake or deception, or which is likely to dilute our exclusive rights in and to the Names and Marks, and further agrees not to utilize any designation of origin or description or representation which falsely suggests or represents an association or connection with us or a former association or connection with us.
D.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, several obligations continue even after the franchise agreement ends. The franchisee must immediately stop using any Confidential Information, methods, trade secrets, procedures, and descriptions of Products and Services associated with Burros Fries, including the Names and Marks. This extends to all signage, advertising materials, menus, stationery, forms, and any other articles displaying the Names and Marks. The franchisee is responsible for making changes to signage, vehicles, and buildings to differentiate the business from its former appearance as a Burros Fries location.
Furthermore, the franchisee must cease operating the Business and cannot represent themselves as a current or former Burros Fries franchisee. They are also prohibited from notifying guests about the termination or expiration of the agreement without prior written consent from Burros Fries, as Burros Fries retains the sole right to notify guests. All existing guest and account lists become the property of Burros Fries.
Additionally, the franchisee is restricted from competing with Burros Fries for a period of two years within a ten-mile radius of the former location or any other Burros Fries franchise or company-owned business. This non-compete agreement is in place to protect Burros Fries's valuable specialized training, Confidential Information, and System. The franchisee also agrees not to use or divulge any Confidential Information for a period of five years following the expiration or termination of the Agreement.