Is the right and license of the Names and Marks granted to a Burros Fries franchisee exclusive?
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 the 2024 Burros Fries Franchise Disclosure Document, the franchise agreement grants the franchisee the right and license to operate a Burros & Fries Business within a protected territory, but this territory is not exclusive. The franchisee can use Burros Fries' Names and Marks, Products, Services, advertising and merchandising methods, and System, but only at the Accepted Location within the protected territory.
The protected territory size is determined by agreement, typically around a three-mile radius from the business. For businesses not in Non-Traditional Locations, the protected territory will be a specified number of miles driven from any direction of the Business. However, Burros Fries retains significant rights, including operating similar businesses outside the franchisee's territory and developing other concepts, even those using the Burros Fries Marks and System.
Burros Fries also reserves the right to market and sell products and services through the Internet and other similar venues without compensating the franchisee. The franchisee is restricted from independently marketing on the Internet or conducting e-commerce without written consent from Burros Fries. Additionally, Burros Fries can modify or eliminate any exclusivity rights a franchisee may have in their territory if the franchisee defaults on the Franchise Agreement, providing only ten days' written notice.