What right does the Burros Fries franchise agreement grant to the franchisee?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
establishing wage and hour requirements, hiring, firing, setting wages, disciplining, supervising and record keeping of employees.
5. FRANCHISE GRANT
We hereby grants to Franchisee, upon the terms and conditions herein contained and subject to this Agreement, the right, license, and privilege, and Franchisee hereby accepts a franchise under the terms and conditions set forth herein, to operate a Burros & Fries Business that has been assigned a protected territory as set forth in Section VI (referred to asthe "Territory"), with the right to use solely in connection therewith our Names and Marks, Products, Services, its advertising and merchandising methods, and our System, as they may be changed, improved and further developed from time to time only at the Accepted Location as set forth in Section VI and provided the Franchisee shall adhere to the terms and conditions hereof.
It is understood and agreed that, except as expressly provided herein or if any other agreement is executed, this franchise includes no right of Franchisee to sub franchise.
Except as provided in this Agreement, Franchisee shall be free to use the materials provided by us in the manner that Franchisee, in Franchisee's sole and absolute discretion, deems most appropriate for the Business, provided that Franchisee shall not violate any applicable law, regulation or provision of this Agreement in exercising such discretion.
6. TERRITORY
Franchisee is not granted an exclusive territory. The Franchisee is granted a Territory that is a protected territory as defined in this Agreement. The location of the Franchise Business shall be as the parties agree, usually about a radius of three (3) miles. If the actual Franchise Business address has not yet been chosen by the time the parties sign the Franchise Agreement they shall agree upon a temporary territory. The final Territory will be defined from the actual Business address once chosen.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the franchise agreement grants the franchisee the right, license, and privilege to operate a Burros & Fries Business within a protected territory. This territory is assigned as detailed in Section VI of the agreement. The franchisee also obtains the right to use Burros Fries's names and marks, products, services, advertising and merchandising methods, and the Burros Fries system. These rights are subject to the terms and conditions outlined in the franchise agreement and can be changed, improved, and further developed by Burros Fries from time to time. The franchisee can only exercise these rights at the Accepted Location specified in Section VI and must adhere to all terms and conditions of the agreement.
Specifically, the territory granted to the franchisee is a protected territory, but it is not an exclusive territory. The location of the franchise business is determined by agreement between the parties, typically within a radius of three miles. If the actual business address is not yet chosen when the agreement is signed, a temporary territory will be agreed upon. The final territory will be defined based on the actual business address once it is selected. The protected territory for a business that is not in a non-traditional location will be a specified number of miles driven from any direction of the business, with the exact distance to be determined and filled in the agreement.
It is important to note that the franchise agreement does not include the right to sub-franchise unless expressly provided or if another agreement is executed. Franchisees are generally free to use the materials provided by Burros Fries in a manner they deem appropriate for the business, as long as they do not violate any applicable laws, regulations, or provisions of the agreement. However, Burros Fries retains rights not expressly granted to the franchisee, including the right to operate other businesses, sell branded products through other channels, and develop other concepts, even those that compete with the franchisee's business.