Regarding site selection for a Burros Fries franchise, who is responsible for negotiating the lease for the Business?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Before you open your Business, we will:
(1) Provide you with written guidelines for site selection. You must, on your own initiative and atyour own expense locate, obtain and occupy the site and negotiate the lease for your Business. You must select the site for your Business within the protected territory provided in the Franchise Agreement. We currently do not own the site and lease it back to you; however, we retain the rights in the future to do so. You may not sign a lease for the site (or contract to purchase the premises, if applicable) in which you wish to operate your Business until you have obtained our written approval. Additionally, you must not invest any money for the site in which you have not received our written approval. We must accept the site if we feel in our total discretion that it meets or exceeds our standards, but our acceptance does not ensure that your Business will be profitable at the approved location. If we do not approve the site, you will be given a second opportunity to locate a site. If we do not approve the second site, we may terminate the Franchise. The factors that we consider in acceptance of the site include: population density, demographics, traffic patterns, convenience, adequate parking, safety, zoning ordinances, neighborhood and physical characteristics of the premises such as size and layout. We evaluate each proposed site and accept or reject each one on a case-by-case basis and will notify you by email or any other form of written communication of our acceptance or rejection of any proposed site within thirty (30) days after we receive your request
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, the franchisee is responsible for locating, obtaining, and occupying a site for their Burros Fries business, as well as negotiating the lease. The franchisee must select a site within the protected territory outlined in the Franchise Agreement. The franchisee cannot sign a lease or invest any money in a site until Burros Fries provides written approval.
Burros Fries provides written guidelines for site selection, but the franchisee is responsible for finding a location that meets the brand's standards. Burros Fries does not currently own sites and lease them back to franchisees, but they retain the right to do so in the future. Burros Fries will evaluate each proposed site on a case-by-case basis, considering factors such as population density, demographics, traffic patterns, convenience, parking, safety, zoning ordinances, and the physical characteristics of the premises.
Burros Fries will notify the franchisee of their decision regarding the site within 30 days of receiving the franchisee's request. If Burros Fries does not approve the initial site, the franchisee will have a second opportunity to find a suitable location. Failure to secure approval on the second site may result in the termination of the franchise agreement. The FDD emphasizes that Burros Fries's approval of a site does not guarantee the profitability or success of the Burros Fries business at that location.