Are Burros Fries Restaurants owned by affiliates required to contribute to the System Advertising Fund?

According to the 2024 Burros Fries Franchise Disclosure Document, Burros & Fries Restaurants owned by affiliates are not required to contribute to the System Advertising Fund. While these affiliated restaurants may contribute to the fund on the same basis as franchisees, they are not mandated to do so.

The System Advertising Fund is used for various purposes, including technology and new product development, national advertising and public relations programs, local franchisee group advertising, and administrative expenses related to advertising and marketing. Burros Fries retains sole discretion over the fund's usage, including creative concepts, materials, and media placement.

Franchisees are required to pay a System Advertising Fee, and failure to do so constitutes a material breach of the Franchise Agreement. However, this requirement does not extend to restaurants owned by Burros Fries' affiliates, providing them with more flexibility in their financial obligations to the advertising fund.