factual

Who is responsible for the cost of installing all build-out specifications for a Burros Fries franchise?

Burros_Fries Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchisee assumes all costs, liability, expense, and responsibility for locating, obtaining and developing a site for the Franchise Business to be established under the Franchise Agreement and for equipping the Business at such premises. A typical Burros & Fries Business has approximately 2,500- 3,000 square feet of space. The space must be enclosed and separate from other businesses with its own locking door. Franchisee may buy or lease the required real property and improvements from any source and on terms approved by us in writing. Franchisee may not sign a lease (or a contract to purchase the premises, if applicable) for the Business until Franchisee has obtained our written approval. Franchisee must not invest any monies for a site in which Franchisee wishes to open a Business until Franchisee has obtained our written approval for the site which will be made by email or any other form of written communication. On the execution of any lease for the Franchise Business, Franchisee will deliver to us a copy of the executed lease and an option to assume the lease executed by the lessor in favor of us in a form acceptable to us. All improvements to the Business must be approved by us.

FRANCHISEE ACKNOWLEDGES THAT OUR ACCEPTANCE OF A PROSPECTIVE SITE AND THE RENDERING OF ASSISTANCE IN THE SELECTION OF A SITE DOES NOT CONSTITUTE A REPRESENTATION, PROMISE, WARRANTY, OR GUARANTEE BY US THAT A BURROS & FRIES FRANCHISE OPERATED AT THAT SITE WILL BE PROFITABLE OR OTHERWISE SUCCESSFUL.

Franchisee acknowledges that we have spent considerable amount of time choosing and creating the décor and outfitting Burros & Fries Businesses. It is part of our trade dress. Franchisee acknowledges and agrees that the design, layout and other characteristics of the Business constitute and/or contain

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2024 FDD)

According to Burros Fries' 2024 Franchise Disclosure Document, the franchisee is responsible for all costs associated with developing the site for their franchise business, including equipping the business premises. This encompasses all expenses related to locating, obtaining, and developing the site.

Burros Fries must approve the site in writing before the franchisee signs any lease or purchase agreement. Furthermore, all improvements to the business must also be approved by Burros Fries. The franchisor's acceptance of a site or assistance in site selection does not guarantee the profitability or success of the Burros Fries franchise at that location.

The design, layout, and characteristics of the Burros Fries business are considered confidential information and trade secrets of the franchisor. Franchisees must maintain and operate their business according to the franchisor's standards, as it is part of their trade dress. This means franchisees must adhere to the franchisor's specifications for build-out, décor, and overall appearance, with the franchisee bearing the costs.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.