What is the purpose of the Franchisee Advisory Council that Burros Fries may form?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
- (iii.) In the future, we may form a franchisee-elected Franchisee Advisory Council or cooperative whose sole purpose is to advise on System Advertising Fund usage and advertising policies.
We retain all operational and decision-making authority concerning advertising and the Advisory Council will serve only in an advisory capacity.
The membership of any Franchise Advisory Council will be national in scope.
The Advisory Council will not be separately
- incorporated, and therefore, it will not have any written documents.
If one is formed, we will have the power to select and approve the members and to form, change, dissolve or merge the Advertising Council as described below.
- (iv.) Neither we nor any Franchise Advisory Council undertake any obligation to ensure that expenditures by the Fund in or affecting any geographic area are proportionate or equivalent to contributions to the Fund by franchises operating in such geographic area or that you or your Business will benefit directly or in proportion to your contribution to the Fund.
Neither the Fund nor we shall be liable to you with respect to the maintenance, direction, or administration of the Fund, including without limitation, with respect to contributions, expenditures, investments or borrowings, except for acts constituting willful misconduct.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–38)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, if the company forms a Franchisee Advisory Council, its sole purpose is to advise on System Advertising Fund usage and advertising policies. However, Burros Fries retains all operational and decision-making authority concerning advertising, meaning the Advisory Council will only serve in an advisory capacity. The membership of any Franchise Advisory Council will be national in scope.
Burros Fries has the power to select and approve the members of the Advisory Council and to form, change, dissolve, or merge the Advertising Council. The Franchisee Advisory Council will not be separately incorporated and will not have any written documents.
The FDD specifies that neither Burros Fries nor any Franchise Advisory Council undertakes any obligation to ensure that expenditures by the Fund in or affecting any geographic area are proportionate or equivalent to contributions to the Fund by franchises operating in such geographic area, or that a franchisee or their business will benefit directly or in proportion to their contribution to the Fund. Furthermore, neither the Fund nor Burros Fries will be liable to the franchisee with respect to the maintenance, direction, or administration of the Fund, except for acts constituting willful misconduct.