When is the renewal fee due to Burros Fries?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
| Audit Expenses | Cost of Audit Fees plus interest at 18% per annum (1.5% per month) up to the maximum interest rate allowed by law. | Ten days after receipt of audit report. | Payable to us only if you understate Gross Revenues by 2% or more. We expect the cost to be between $3,500- $6,500 unless your financial records are not well kept. |
|---|---|---|---|
| Costs and Attorney’s Fees | Will vary under circumstances. | As Incurred. | Payable as incurred by us in obtaining injunctive relief or the enforcement of any item of the Franchise Agreement. |
| Indemnification | Will vary under circumstances. | On Demand. | As Incurred; See Note 4. |
| POS Support | Currently $130-$140 per month for 1 cash register, software and ongoing support. | Monthly. | Payable to our approved vendors. See Note 5 |
| Laundry Service Fees | Currently $1,000-$1,500 per month for professional laundry services | Monthly. | Payable to our approved vendors. See Note 6 |
| Inspection Fee | $1,000 if you fail to pass an inspection for the second time. | On Demand. | Payable to us See Note 7 and Item 8. |
| Renewal Fee | $5,000 | At the time of every renewal for each franchise. | Payable to us for the same protected area. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the renewal fee of $5,000 is due at the time of every renewal for each franchise. This fee is payable to Burros Fries for the same protected area.
For a prospective franchisee, this means that when the franchise agreement term is coming to an end and they elect to renew their agreement to continue operating their Burros Fries location, they will need to pay Burros Fries $5,000 at the time of renewal. This fee allows the franchisee to continue operating within their previously agreed-upon protected area.
It is important for prospective franchisees to factor this renewal fee into their long-term financial planning. Franchisees should also confirm with Burros Fries how far in advance of the renewal date the fee must be paid to ensure there are no disruptions in their franchise operations.