Who is responsible for the cost of publishing or distributing Burros Fries advertising and promotional materials in the franchisee's market area?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
enefit only the Franchisee, and no other party is entitled to rely on, enforce, benefit from or obtain relief for breach of such obligations, either directly or by subrogation.
B. Web Page
We will provide to Franchisee a Burros & Fries page housed within the corporate website that may include interactive functionality and portals online for additional training, advertising, operational and support materials. Franchisee may customize parts of the web page with our approval however the look of the web page must remain consistent as specified in the Operations Manual. Franchisee agrees and acknowledges that maintenance and any changes, edits or updates to the web page must be performed by us, our affiliates and/or approved vendors. Upon approval of Franchisee's request, which must be submitted in writing, Franchisee is responsible for the cost of such changes. Franchisee may neither establish nor use any Website or perform any type of promotion over the Internet without our prior written approval and if such approval is granted Franchisee must comply with our requirements regarding discussing, advertising or disseminating any information on a Website, regarding the Business as described in Section 6 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the costs associated with advertising and promotional materials are handled in a few different ways. Burros Fries collects a System Advertising Fee, which is a percentage of the franchisee's gross revenue, to be used for advertising and marketing programs. Burros Fries has sole discretion over these programs, including the creative concepts, materials, and media used.
However, the franchisee is responsible for the costs of changes, edits, or updates to their Burros & Fries web page housed within the corporate website, provided the franchisee's request is approved by Burros Fries. The franchisee must submit such requests in writing.
In terms of local advertising, the FDD mentions that the System Advertising Fund may be used for local franchisee group advertising or marketing. However, it does not explicitly state who is responsible for the initial creation or distribution costs of local advertising materials outside of the web page updates. It would be prudent for a prospective franchisee to clarify with Burros Fries the extent to which the System Advertising Fund covers local advertising creation and distribution costs, and under what circumstances the franchisee would bear these costs directly.