Is participation in the operation of the Burros Fries business an obligation of the franchisee?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee acknowledges that a Burros & Fries Business involves hard work and long hours. Franchisee acknowledges that we have not represented that this Business is going to be easy for Franchisee (or any of its Owners) and agrees to participate in the day-to-day operation of the Business. Unless otherwise approved in writing by us, Franchisee (or one of its Owners) is required to participate in the dayto-day operation of the Business for at least the first year of operation. After Franchisee's first year of operation, Franchisee (or one of its Owners) is not required to participate in the day-to-day operation, however Franchisee agrees that the Business must be at all times under the operation of a General Manager approved by us (as described in Section 12.F of this Agreement). Franchisee agrees that the General Manager will oversee the operations and supervise all Employees. The General Manager will also be responsible for providing continuing guidance, oversight, day-to-day management, oversee all food preparation, enforce service standards and properly process all paperwork, reports and complaints.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees are initially required to participate in the daily operations of their business. Specifically, for the first year of operation, the franchisee, or at least one of the owners, must participate in the day-to-day operations of the Burros Fries business, unless the franchisor provides written approval otherwise. This initial requirement underscores the importance Burros Fries places on active owner involvement during the critical startup phase.
After the first year, the mandatory participation requirement is relaxed. However, the franchisee must ensure that a General Manager, approved by Burros Fries, is in charge of the business's operations. This General Manager is responsible for overseeing operations, supervising employees, providing guidance, managing food preparation, enforcing service standards, and handling paperwork, reports, and complaints.
This policy allows for flexibility after the initial period, enabling franchisees to take a more hands-off approach if they choose, provided they have a qualified and approved General Manager in place. However, it also highlights the ongoing responsibility of the franchisee to ensure the business is well-managed and adheres to Burros Fries's standards, whether through their direct involvement or through a competent manager.