What is the 'Premises' referring to in the Collateral Assignment of Lease for Burros Fries?

According to Burros Fries's 2024 Franchise Disclosure Document, the term "Premises" in the context of the Collateral Assignment of Lease refers to the physical property where the Burros Fries franchise will operate. The document specifies that the franchisee, to fulfill the requirements of the Franchise Agreement, assigns to Burros Fries all rights, title, and interest in the lease for the property, which is commonly known as the "Premises."

This assignment is secured by a lease agreement between the franchisee and the landlord. A copy of this lease is attached to the Collateral Assignment of Lease, further clarifying the specific location and terms associated with the Premises. The physical location must be enclosed and separate from other businesses with its own locking door.

For a prospective Burros Fries franchisee, understanding the definition of "Premises" is crucial because it directly relates to the site of their franchise business. The franchisee bears the responsibility for finding, securing, and developing this site, subject to Burros Fries's written approval. This approval process ensures that the location meets the franchisor's standards and is suitable for operating a Burros Fries restaurant. The typical Burros & Fries Business has approximately 2,500- 3,000 square feet of space.