On what page of the Burros Fries FDD can I find information about financing arrangements?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
In addition, the Franchisee must submit copies of the draft Asset Purchase Agreement or Ownership Purchase Agreement, all draft Promissory Notes, and Security Agreements, with the transferee, regardless of whether they are Franchisee financed or lender financed. In addition to all other grounds for rejection, we have the right to reject any proposed purchase of the assets of the Franchised Business or any type of ownership interest in the Franchisee or Franchised Business on the grounds that the proposed transferee has, in our sole opinion, taken on too much debt.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
I am unable to provide the exact page number in Burros Fries's 2024 Franchise Disclosure Document (FDD) that discusses financing arrangements. However, Item 22 (Contracts) does address some financing-related issues in the context of franchise transfers.
Specifically, if a franchisee seeks to transfer their franchise to a new owner, Burros Fries requires submission of all draft Asset Purchase Agreements, Ownership Purchase Agreements, Promissory Notes, and Security Agreements, regardless of whether the financing is franchisee-financed or lender-financed. Burros Fries retains the right to reject a proposed transfer if it believes the transferee is taking on too much debt. This indicates that Burros Fries does consider the financial stability of potential new owners during franchise transfers.
To get details about financing options, a prospective Burros Fries franchisee should ask the franchisor directly about any preferred lenders, available financing programs, or assistance they offer in securing funding. This information is crucial for understanding the full financial picture of opening and operating a Burros Fries franchise.