What are the requirements 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 the 2024 Burros Fries Franchise Disclosure Document, a franchisee cannot relocate their business without prior written consent from Burros Fries. The FDD specifies that the franchisee must operate their Burros Fries business within the specific territory that has been identified in the Franchise Agreement. The franchisee is prohibited from opening a business at any location other than the Accepted Location, which is established in the agreement or through an addendum.
Burros Fries determines the territory based on factors such as population, demographics, traffic patterns, proximity to major roads, parking, competition, business potential, site availability, square footage, and rent. Once a location is chosen and approved by Burros Fries, the territory is set and will not change during the agreement, even if the population increases or decreases. The territory boundaries are defined by major topographical features like streets, highways, rivers, and mountains.
This policy ensures that Burros Fries maintains control over its brand's market presence and prevents franchisees from potentially harming each other's businesses by moving locations without approval. A prospective franchisee should carefully consider the initial location and territory, as relocation is not guaranteed and requires the franchisor's consent.