Who is responsible for lease negotiations for a Burros Fries franchise location?
Burros_Fries Franchise · 2024 FDDAnswer 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.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the franchisee bears the responsibility for all aspects of site selection, including lease negotiations. The franchisee is responsible for the costs, liability, and expenses associated with finding, securing, and developing a location for their Burros Fries franchise. The FDD specifies that a typical Burros & Fries Business requires approximately 2,500-3,000 square feet of enclosed space.
While the franchisee is in charge of site selection and lease negotiation, Burros Fries maintains some control over the process. The franchisee must obtain written approval from Burros Fries for the site before signing any lease or purchase agreement. Additionally, Burros Fries requires a copy of the executed lease and an option to assume the lease in their favor. This allows Burros Fries to ensure that the location and lease terms align with their standards and provides them with a contingency plan.
This arrangement is fairly typical in franchising, where the franchisee usually handles local real estate matters while the franchisor retains approval rights to protect brand consistency and viability. However, the FDD explicitly states that Burros Fries's acceptance of a site does not guarantee the franchisee's profitability or success at that location. Therefore, prospective franchisees should conduct thorough due diligence and market research before committing to a specific site.