To whom are payments for kitchen equipment, furniture, and fixtures made when opening a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Amount Low/High | Method of Payment | When Due | To Whom Payment is to be Made | |
|---|---|---|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 | Cash or Acceptable Funds | At signing of the Franchise Agreement. | Franchisor See Item 5 |
| Technology including Computers | $5,000 | $10,000 | Cash or Acceptable Funds (for computers, , modem, routers, sound system, camera surveillance system and telephones.) | Before opening | Payable to our approved vendors See Note 1 |
| Kitchen Equipment, Furniture and Fixtures | $120,000 | $160,000 | Cash or Acceptable Funds. Actual costs will vary based on the size of your facility. | Before opening | Payable to our approved vendors See Note 2 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 16–21)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the payments for kitchen equipment, furniture, and fixtures are made to approved vendors. The estimated cost for these items ranges from $120,000 to $160,000, and the actual costs may vary based on the size of the facility. These payments are due before opening the Burros Fries business.
Note 2 in Item 7 of the FDD specifies that franchisees must lease or purchase all kitchen equipment, furnishings, and fixtures from Burros Fries, its affiliates, or its approved vendors and suppliers. The equipment and fixtures must meet the franchisor's specifications, which are subject to change. The cost depends on financing terms and the condition of the equipment.
Prospective franchisees should confirm a list of approved vendors during their due diligence. They should also clarify the specifications for kitchen equipment, furniture, and fixtures to accurately estimate the costs involved. Understanding the approved vendors and the specifications will help in budgeting and ensuring compliance with Burros Fries's requirements.