What are the requirements for a shared space if a Burros Fries franchisee chooses to occupy one?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
r purchase agreement.
Note 3: A typical Business is in a shopping center, mall or a free-standing building. Cost per square foot will depend on your geographic area and we estimate such costs to be approximately $3 per square foot on the low end and approximately $5 per square foot on the high end. These sums do not include common area maintenance fees, which if applicable, will vary depending on your location or any sums for the purchase of real property, as we do not expect that you will buy real property. Real estate costs depend on location, size, visibility, economic conditions, accessibility and competitive market conditions. You may be able to reduce this expense if you are able to occupy a space in an existing location that compliments another business. The space must be enclosed and separate from other businesses with its own locking door. In the event you leave your leased premises before the termination of your lease, you may owe the landlord payment for the entire lease term depending on the terms and c
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 16–21)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, franchisees may be able to reduce real estate expenses by occupying a space in an existing location that complements another business. However, the space must be enclosed and separate from other businesses, and it must have its own locking door.
Burros Fries estimates that the cost per square foot for a typical business location ranges from $3 to $5, excluding common area maintenance fees. These costs can vary based on location, size, visibility, economic conditions, accessibility, and competitive market conditions. The FDD also states that real estate costs depend on location, size, visibility, economic conditions, accessibility and competitive market conditions.
If a franchisee chooses to leave the leased premises before the lease term ends, they may owe the landlord payment for the entire lease term, depending on the lease terms and conditions. Therefore, franchisees should carefully consider the lease terms and potential costs associated with early termination when selecting a location.