What page in the Burros Fries FDD discusses the initial franchise fee and payment for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
, and has sufficient cash resources available to meet said expenses. These start-up costs include the Initial Franchise Fee.
9. FRANCHISEE'S INITIAL FRANCHISE FEE
A. Initial Franchise Fee and Payment
By executing this Franchise Agreement, the applicant agrees to become a Franchisee and pay an Initial Franchise Fee in the amount of Thirty-Five Thousand dollars ($35,000) for a Burros & Fries Business. This Initial Franchise Fee includes a license to operate a single Burros & Fries Business in a Territory that is up to three (3) miles driven in any direction from the Business determined by boundaries as described in Section 6 of this Agreement. The Initial Franchise Fee includes a regional web page housed within our national website, the complete training program at our corporate headquarters and manuals. We choose to allocate some of that time to pre-opening or grand opening assistance.
The Initial Franchise Fee per this Agreement is due upon execution of this Franchise Agreement. The Initial Franchise Fee is uniform as to all persons currently acquiring a franchise as of the effective date of this Agreement, although this may change. The Initial Franchise Fee shall be paid in a lump sum in U.S. funds and shall be deemed fully earned and no
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the initial franchise fee and payment details are discussed on page 69. To become a Burros Fries franchisee, the applicant must agree to pay an initial franchise fee of $35,000 for a Burros & Fries Business. This fee grants a license to operate a single Burros & Fries Business within a territory of up to three miles in any direction from the business location. The boundaries are further described in Section 6 of the agreement. The initial franchise fee also covers a regional webpage within the national website, the complete training program at the corporate headquarters, and access to manuals.
The $35,000 initial franchise fee is due upon execution of the Franchise Agreement. This fee is uniform for all new franchisees as of the agreement's effective date, although Burros Fries retains the right to change this fee in the future. The fee must be paid in a lump sum in U.S. funds. Once paid, the initial franchise fee is considered fully earned and nonrefundable. This nonrefundable status acknowledges the administrative and other expenses Burros Fries incurs in granting the franchise, as well as the lost or deferred opportunity to franchise others.
Prospective franchisees should carefully consider these terms, as the initial franchise fee represents a significant upfront investment that is nonrefundable. It is important to fully understand what the fee covers, including the training, support, and territorial rights, before signing the agreement. Franchisees should also be aware that while the fee is currently uniform, Burros Fries reserves the right to change it in the future, which could impact the cost for subsequent franchisees.