Does Burros Fries offer a referral fee for referring franchise prospects?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
We encourage the owners of all Franchised Businesses to work out a referral relationship and advertising strategy or arrangement if they are within close proximity of each other (defined as being within a ten-mile radius of each other). We must be notified of all such arrangements.
We reserve the right to issue binding policies to coordinate marketing councils and/or advertising cooperative programs. For example, we may require that all franchisees within close proximity to consumer food shows, conventions or exhibitions where food products are being sold to participate in the cost and benefit of the show. All such programs and policies are our proprietary trade secrets. In such programs, we may require the customer that is acquired through such programs, to be served by the closest or other franchisee and may or may not require franchisees serving the person to do so at a minimum price or pay a reasonable referral fee.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, Burros Fries encourages owners of franchised businesses within a ten-mile radius of each other to develop a referral relationship and advertising strategy. The FDD states that Burros Fries must be notified of all such arrangements.
Burros Fries reserves the right to issue binding policies to coordinate marketing councils and/or advertising cooperative programs. As part of these programs, Burros Fries may require franchisees within close proximity to consumer food shows, conventions, or exhibitions to participate in the cost and benefit of the show.
In these programs, Burros Fries may require that customers acquired through such programs be served by the closest franchisee, and may or may not require franchisees serving the person to do so at a minimum price or pay a reasonable referral fee. This means that while Burros Fries does not explicitly offer a referral fee for simply referring franchise prospects, they may require franchisees to pay a referral fee to other franchisees in specific marketing and customer acquisition scenarios.