What is the required action for a Burros Fries franchisee to relocate their business?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall not relocate its Business that has been assigned a Territory without our prior written consent (specified in Section 22.A). If Franchisee is provided with a Territory then during the term of this Agreement, we shall not establish, nor license another party or entity to establish, Burros & Fries Business within the Territory outlined above. If Franchisee decides to open additional Businesses and buys the rights to additional Franchises, then those separate franchise agreement(s) will dictate the terms of the applicable territory (a separate Franchise Agreement is required for each additional Business as defined in Section 9.D of this Agreement).
Franchisee must operate its Business within the specific Territory as identified in this Section VI. Franchisee may not open a Business at any other location other than the Accepted Location that has been set forth in this Agreement or made a part hereof by an addendum attached to this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, a franchisee must obtain prior written consent from Burros Fries before relocating their business if they have been assigned a specific territory.
This requirement ensures that any relocation aligns with Burros Fries's strategic objectives and protects the brand's presence in the designated territory. The FDD also states that the territory is determined once a location is chosen and approved by Burros Fries, and it will not be altered even if there is a population increase or decrease during the term of the agreement. The boundaries of the territory are determined by major topographical features such as streets, highways, rivers, and mountains.
This policy is typical in franchising, as franchisors want to control brand distribution and avoid cannibalization between franchise units. A prospective Burros Fries franchisee should discuss territory specifics and relocation policies with the franchisor to fully understand their obligations and rights.