Are the POS support fees for Burros Fries payable to the franchisor?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
| POS Support | Currently $130-$140 per month for 1 cash register, software and ongoing support. | Monthly. | Payable to our approved vendors. See Note 5 |
Note 5: You are required to use specific point of sale ("POS" or "POS system") software for the operation of your Business. The POS software is specific to our business and tracks various aspects and provides reporting functionality. The POS support fee is for the usage of such software in addition to ongoing software support which is currently $130-$140 per month per cash register. This fee is payable to our approved vendor. It is your responsibility to install and upgrade the POS system, networking and software for your Business. We may change the technology requirements upon ninety (90) days' written notice to you and you will be required to adhere to our
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the POS support fees are not payable to the franchisor. The FDD specifies that the POS support fees, which currently range from $130 to $140 per month for one cash register including software and ongoing support, are payable to Burros Fries's approved vendors.
This means that franchisees will remit payment for the POS system directly to the vendor approved by Burros Fries, rather than to the franchisor itself. This arrangement is fairly common in franchising, as franchisors often negotiate with third-party vendors to provide services and systems to franchisees.
It is important for prospective Burros Fries franchisees to understand that while the franchisor mandates the use of a specific POS system, the financial relationship for this system is with the approved vendor. Franchisees should confirm the current approved vendors and payment procedures during their due diligence process.