Will Burros Fries provide incentive programs for franchisee contributions to software modifications?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Burros Fries does not explicitly state whether they provide incentive programs for franchisee contributions to software modifications. However, the FDD does mention the System Advertising Account, which collects fees for ongoing technology or new product development.
The System Advertising Fee is received by Burros Fries on or before the fifth day of each month, based on the prior month's Gross Revenue. These funds are deposited into the System Advertising Account, which Burros Fries uses for technology and new product development, including recipes, menu items, and kitchen equipment. The funds can also be used for advertising, marketing, and Franchisee advisory council expenses.
Burros Fries has sole discretion over the creative concepts, materials, endorsements, and media used in these programs, including the allocation of funds. While franchisees contribute to the System Advertising Account, the document does not specify any direct incentives for individual franchisee contributions to software modifications. It is within Burros Fries's discretion how the funds are allocated and used for technology development.
Prospective franchisees should inquire with Burros Fries directly about any existing or planned incentive programs related to software modifications or other technological contributions. Understanding how franchisee input is valued and potentially rewarded can be an important factor in assessing the overall franchise opportunity.