What is the required method of payment for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
s. These start-up costs include the Initial Franchise Fee.
9. FRANCHISEE'S INITIAL FRANCHISE FEE
A. Initial Franchise Fee and Payment
By executing this Franchise Agreement, the applicant agrees to become a Franchisee and pay an Initial Franchise Fee in the amount of Thirty-Five Thousand dollars ($35,000) for a Burros & Fries Business. This Initial Franchise Fee includes a license to operate a single Burros & Fries Business in a Territory that is up to three (3) miles driven in any direction from the Business determined by boundaries as described in Section 6 of this Agreement. The Initial Franchise Fee includes a regional web page housed within our national website, the complete training program at our corporate headquarters and manuals. We choose to allocate some of that time to pre-opening or grand opening assistance.
The Initial Franchise Fee per this Agreement is due upon execution of this Franchise Agreement. The Initial Franchise Fee is uniform as to all persons currently acquiring a franchise as of the effective date of this Agreement, although this may change. The Initial Franchise Fee shall be paid in a lump sum in U.S. funds and shall be deemed fully earned and no
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the initial franchise fee is $35,000. This fee is required upon the execution of the Franchise Agreement.
The FDD specifies that the initial franchise fee must be paid as a lump sum using U.S. funds. This means Burros Fries requires the full $35,000 to be paid at once, not in installments, and the payment must be made in United States dollars.
Burros Fries considers the initial franchise fee fully earned and nonrefundable once paid. This is in consideration of the administrative and other expenses Burros Fries incurs in granting the franchise, as well as the lost opportunity to franchise others. This is a common practice in franchising, as the franchisor incurs costs from the outset in evaluating and setting up a new franchisee.