factual

Why does Burros Fries recommend a drive-through facility?

Burros_Fries Franchise · 2024 FDD

Answer from 2024 FDD Document

nditions of your lease.

Note 4: We advise you to find a space needing minimal leasehold improvements or fixtures. In most cases you will need to alter the interior of your Business before you open for operation. The costs will vary widely and may be significantly higher than what is projected in the table above depending on factors such as the condition of the property and the extent of alterations required for the property. The high estimate reflects the potential need to construct a drive-through facility. We highly recommend you make use of a drive-through as part of your facilities, as it is an important aspect of your sales. In addition, we assume that your landlord will provide connections to adequate

electrical, gas, water and sewage service and your landlord may provide tenant improvement allowances. We base our estimates on the costs that our affiliates incurred when building out their locations. You should investigate all these costs in the area in which you wish to establish a Burros & Fries Business. We will provide you with standard layouts and design options for your Business;

Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 16–21)

What This Means (2024 FDD)

According to the 2024 Burros Fries Franchise Disclosure Document, Burros Fries highly recommends that franchisees make use of a drive-through as part of their facilities because it is considered an important aspect of their sales. The document also indicates that the construction of a drive-through facility is included in the high estimate for leasehold improvements.

However, the FDD also states that a drive-through facility is an optional addition to the restaurant, and Burros Fries believes that most franchisees will not include it in their restaurant. The estimated expenditure for a drive-through facility is between $10,000 on the low end and $20,000 on the high end, which is not included in the total estimated initial investment. If a franchisee thinks they will or might include a drive-through facility, they should add these amounts, which would bring the total low estimated initial investment to $600,000 and the high to $913,000.

Prospective franchisees should carefully consider the potential benefits of a drive-through in terms of increased sales, but also weigh the additional costs and whether the location of their Burros Fries restaurant would support and benefit from a drive-through. It is important to note that the decision to include a drive-through is ultimately at the franchisee's discretion.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.