factual

Is permitting the franchisor to enter the Burros Fries business an obligation of the franchisee?

Burros_Fries Franchise · 2024 FDD

Answer from 2024 FDD Document

Any rights not expressly granted to the Franchisee are reserved to us. Such rights reserved to us include but are not limited to the following:

    1. Own and/or operate ourselves, and/or authorize others to own and/or operate:
  • a) Any kind of business in the Territory which is not substantially similar to a Burros & Fries Business, whether or not using the Marks and System and on any terms and conditions we deem appropriate; and

  • b) Any kind of business outside of the Territory, including, without limitation, Burros & Fries Businesses, whether or not using Burros & Fries Marks and System and on any terms and conditions we deem appropriate;

    1. Develop, distribute and sell Burros & Fries labeled and branded (or any other brand) products and kitchen equipment (if developed) to anyone located anywhere (including within the Territory, if applicable) using any channel of distribution other than the operation of a Burros & Fries Business in the Territory and on any terms and conditions we deem appropriate;
    1. Develop or become associated with concepts other than the Business franchised hereunder (including dual branding and/or other franchise systems), whether or not using the System and/or the Marks, and award franchises under such other concepts for businesses located and/or operating anywhere;
    1. Acquire, be acquired by, sell our assets, sell our stock, membership units, or partnership units to, merge, affiliate with or engage in any transaction with other businesses (whether competitive or not), with units located anywhere.

Such transactions may include (but are not l

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2024 FDD)

According to the 2024 Burros Fries Franchise Disclosure Document, the franchisee is not obligated to permit the franchisor to enter the Burros Fries business. Instead, the franchisor reserves specific rights, including the right to operate businesses, develop products, and engage in transactions without the franchisee's direct permission.

Specifically, Burros Fries retains the right to own and operate any kind of business, whether or not it is similar to a Burros Fries Business, within or outside the franchisee's territory. This includes using the Burros Fries marks and system under any terms and conditions the franchisor deems appropriate. Additionally, Burros Fries can develop, distribute, and sell branded products and kitchen equipment to anyone, anywhere, through any distribution channel other than the franchisee's Burros Fries Business operation in their territory.

Burros Fries also reserves the right to develop or associate with other business concepts, including dual branding, and to award franchises under these concepts for businesses located anywhere. Furthermore, Burros Fries can engage in transactions such as acquisitions, mergers, or affiliations with other businesses, regardless of whether they are competitive, and with units located anywhere. These rights are expressly reserved to Burros Fries, and the franchisee has no explicit obligation to permit the franchisor's entry into any business venture.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.