Does Burros Fries reserve the right to grant a territory that is smaller than three miles?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
on or competitive brands that we control. You are awarded a protected territory ("Territory") that will include up to three (3) miles driven in any direction from the Franchise Business as defined by MapQuest or a similar mapping program, provided we reserve the right to grant a territory that is larger or smaller than this area described above, in order to account for more densely or sparsely populated areas and other factors. We will determine population based on the most recently published data from the U.S. Census Bureau (or such other source we may indicate to you). You may not conduct business out of any other location other than the accepted location that has been entered in your Franchise Agreement or made part of by an addendum attached to your Franchise Agreement. You may service guests and sell approved retail items to anyone who comes from anywhere so long as your sales do not result from any Target Marketing (as defined below) activities by you. However, you can perform off-site events (such as community events, consumer shows, festivals, expos, etc.) and catering services within your Territory. You may also be able to perform off-site events and/or catering services in geographic areas outside your Territory under certain circumstances (as described below).
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees are awarded a protected territory that includes up to three miles driven in any direction from the franchise business. However, Burros Fries retains the right to adjust the territory size based on population density and other factors. This means that Burros Fries can grant a territory that is either larger or smaller than the standard three-mile radius.
This flexibility in territory size has implications for prospective franchisees. In densely populated areas, a smaller territory might be granted, potentially increasing competition between Burros Fries locations. Conversely, in sparsely populated areas, a larger territory could be assigned, which might require more extensive marketing efforts to reach potential customers. The FDD states that population is determined using the most recently published data from the U.S. Census Bureau or another source indicated by Burros Fries.
Furthermore, the FDD specifies that the licensed territory is determined by Burros Fries once a location is chosen, considering factors like population, business potential, traffic patterns, demographics, available parking, and market penetration. Once determined, the territory will not be altered due to population changes or sales volume, although Burros Fries may change the territory if the franchisee is in default. Certain metropolitan areas may have smaller territories due to densely populated areas. Therefore, a prospective franchisee should carefully evaluate the specific territory offered and understand the factors that influenced its size, as it can significantly impact the business's potential and competitive landscape.