Does Burros Fries require franchisees to purchase inventory from approved vendors?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
e dress. Franchisee must purchase such items from us and/or our affiliates or approved vendors as specified in the Operations Manual and Section 12.T of this Agreement.
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- To insure the consistent high quality and uniformity of Products and Services provided by the Franchised Businesses, Franchisee must lease or purchase all products, supplies, kitchen equipment and services (as described above) for use in the operation of its Business, from us, our affiliates or approved vendors who demonstrate to our continuing satisfaction an ability to meet our standards and specifications. We are not liable to Franchisee for any loss or damage, or deemed to be in breach of this Agreement, if we, our affiliates or approved vendors and/or suppliers cannot deliver, or cause to be delivered, Franchisee's order of products, supplies or kitchen equipment where such items are outof-stock or discontinued. Franchisee is prohibited from purchasing or leasing products, supplies, kitchen equipment and services from unapproved vendors and/or suppliers who are not on our approved list without our written approval. We shall approve or deny Franchisee's request, which approval is in our sole discretion, within thirty (30) days of receipt of Franchisee's written request. Such approval or disapproval shall be made by email or any other form of written communication. Failure of Franchisee to purchase such items from us, our affiliates or approved vendors and/or supplies and use such unapproved items in the operation of its Business may result in termination of this Agreement as specified in Section 23.C of this Agreement.
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- In approving any vendor or supplier we may consider factors such as: price, quality, composition, performance, accuracy of product claims, durability, safety, technical specifications, frequency of delivery, design, service maintenance programs, determination of quality control, value, customer service strength, prompt attention to complaints, litigation against the supplier, reputation of supplier, any product recalls instituted by the United States Consumer Product Safety Commission, the supplier's financial strength and capacity to supply franchisee's needs promptly, reliably, and cost effectively. All vendors and suppliers must be approved in writing by us and may be disapproved by us anytime thereafter. If Franchisee desires to lease or purchase unapproved equipment, products, supplies or services from unapproved vendors, Franchisee shall submit to us a written request for such approval.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees are generally required to purchase or lease products, supplies, and kitchen equipment from Burros Fries, its affiliates, or approved vendors. This is to ensure consistent quality and uniformity of products and services across all franchised businesses.
Specifically, franchisees must use only approved items such as ingredients (including dry goods, spice packages, sauces, dressings, and condiments), fresh produce, dairy products, beverage products (like tea, carbonated drinks, juices, and specialty beverages), supplies (small wares, disposables, packaging, and cooking supplies), merchandise for sale (shirts, hats, baby bibs), kitchen equipment (refrigerators, freezers), furnishings, fixtures, technology (computers, POS systems, sound systems), software, printed menus, signage, uniforms, laundry services, merchant services, POS support, and printed advertising materials. Burros Fries may receive income from approved vendors through license fees, promotional fees, advertising allowances, or rebates.
Franchisees are prohibited from purchasing or leasing these items from unapproved vendors without written approval from Burros Fries, which Burros Fries will either approve or deny within 30 days. Failure to comply with this requirement may result in the termination of the Franchise Agreement. Burros Fries may periodically add to, modify, or change the approved products, supplies, kitchen equipment, vendors, and suppliers, and franchisees must promptly implement these changes at their own expense. Burros Fries bases its vendor approvals on factors like price, quality, safety, and the vendor's financial stability.