What options does Burros Fries have if a franchisee declines to serve a National Account?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
d) If Franchisee elects not to provide Products or perform Services to a National Account in conformity with the terms and conditions of the National Account bid or contract, orfails to make an election within the time specified by us, of being offered the opportunity by us, we shall have the right, exercisable in our sole discretion, to:
i.
Provide directly or through any other affiliate or franchisee utilizing our Marks, Products and/or Services to a National Account location(s) located anywhere on the terms and conditions contained in the National Account bid or contract; and/or
- ii.
Contract with another party to provide Products and/or perform Services to the National Account location(s) located anywhere on the terms and conditions contained in the National Account bid or contract between us and the National Account, utilizing our Marks or any trademarks, service marks or trade names.
- 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.
Franchisee disclaims any compensation for Products provided or Services performed by others pursuant to this section.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries' 2024 Franchise Disclosure Document, if a franchisee chooses not to provide products or services to a National Account under the terms of a National Account bid or contract, or fails to respond within the specified timeframe when offered the opportunity, Burros Fries has specific rights.
Burros Fries, at its discretion, can either directly provide the products or services to the National Account through its own means, affiliates, or other franchisees, using Burros Fries' trademarks and products, or contract with another party to fulfill the obligations to the National Account, also utilizing Burros Fries' marks. This allows Burros Fries to ensure that National Account contracts are fulfilled even if a specific franchisee is unwilling or unable to do so.
Importantly, the FDD states that the franchisee will not receive compensation for products or services provided by others under this arrangement. Furthermore, the agreement specifies that Burros Fries' actions in providing products or services to National Accounts, either directly or through another party, do not constitute a violation of the franchisee's territorial rights, even if such activities occur within the franchisee's territory. This clarifies that the franchisee's territorial rights are subject to Burros Fries' ability to service National Accounts.