Does Burros Fries provide advertising and promotion assistance to franchisees?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
more than 1% upon 90 days' written notice to you and shall not exceed 3% of Gross Revenue per month for the term of the Franchise Agreement.
The System Advertising Fee is to be received by us on or before the fifth (5th) day of each month for the prior month's Gross Revenue (as defined above in Section 10.A). This fee will be deposited into our System Advertising Account (the "Fund") for ongoing technology or new product development (including recipes and menu items) or kitchen equipment development, and such national advertising or public relations programs as we, in our sole discretion, may deem appropriate to promote our mark. The Fund may also be used for local franchisee group advertising or marketing and Franchisee advisory council expenses; local, regional, national or international advertising or marketing; administration of advertising and marketing (including salaries, accounting, collection, legal and other costs), related expenses and any media (including media production costs) or agency costs. We will direct all such programs, and will have sole discretion over the creative concepts, materials, endorsements and media used in such programs, and the placement or allocation of such programs. We reserve the right to determine in our sole discretionthe composition of all geographic territories and market areas for the implementation and development of such programs. The Burros & Fries Restaurants owned by our affiliates may will contribute on the same basis to the Fund but are not required.
We may disclose the identity of vendors who pay promotional allowances to us upon request and only after Franchisee's signing an appropriate non-disclosure agreement. We have the right to spend that money as we determine. We are not obliged to spend more on advertising and marketing than the amount of the Fund. Any unspent balance in the Fund at the end of the year may be carried over to later years and used for the purposes described in this Agreement. Neither we nor any of our members has any fiduciary duty to the Franchisee regarding any System Advertising Fund.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees benefit from advertising and promotional support. Franchisees are required to pay a System Advertising Fee, which is collected by Burros Fries and deposited into a System Advertising Account. This fund is used for technology and new product development, including recipes, menu items, kitchen equipment, and national advertising and public relations programs. Burros Fries has sole discretion over these programs, including creative concepts, materials, and media used.
The System Advertising Fund can also be used for local franchisee group advertising or marketing, Franchisee advisory council expenses, local, regional, national, or international advertising or marketing, and the administration of advertising and marketing, including salaries and related expenses. Burros Fries directs all advertising programs and determines the geographic territories and market areas for implementation. While Burros Fries's affiliated restaurants may contribute to the fund, they are not required to do so.
Franchisees are required to use only advertising materials that are approved by Burros Fries. Franchisees also get a Burros & Fries webpage housed within the corporate website that may include interactive functionality and portals online for additional training, advertising, operational and support materials. Franchisees may customize parts of the web page with Burros Fries's approval; however, the look of the web page must remain consistent as specified in the Operations Manual. Franchisees are responsible for the cost of changes to the webpage.