Does Burros Fries have an option to purchase a franchisee's assets upon termination or non-renewal of the Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise Agreement | Summary |
|---|---|---|
| o. Our option to purchase your assets upon termination or non-renewal. | FA – Sections 22.F and 24.G | FA – Purchase for fair market value determined by appraisal if parties are unable to agree. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 46–49)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, Burros Fries does have the option to purchase a franchisee's assets upon termination or non-renewal of the franchise agreement. This is detailed in Item 17, which summarizes key provisions of the franchise agreement.
Specifically, Burros Fries's option to purchase a franchisee's assets is outlined in Sections 22.F and 24.G of the Franchise Agreement. If Burros Fries exercises this option, the purchase price will be the fair market value of the assets.
The fair market value will be determined by an appraisal if Burros Fries and the franchisee cannot agree on a price. This appraisal process ensures that the franchisee receives a fair price for their assets, even when the franchise relationship is ending. This is a fairly standard clause in franchise agreements, intended to provide a clear exit strategy for both parties.