Does this section of the Burros Fries agreement mention any fees associated with the franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
s. These start-up costs include the Initial Franchise Fee.
9. FRANCHISEE'S INITIAL FRANCHISE FEE
A. Initial Franchise Fee and Payment
By executing this Franchise Agreement, the applicant agrees to become a Franchisee and pay an Initial Franchise Fee in the amount of Thirty-Five Thousand dollars ($35,000) for a Burros & Fries Business. This Initial Franchise Fee includes a license to operate a single Burros & Fries Business in a Territory that is up to three (3) miles driven in any direction from the Business determined by boundaries as described in Section 6 of this Agreement. The Initial Franchise Fee includes a regional web page housed within our national website, the complete training program at our corporate headquarters and manuals. We choose to allocate some of that time to pre-opening or grand opening assistance.
The Initial Franchise Fee per this Agreement is due upon execution of this Franchise Agreement. The Initial Franchise Fee is uniform as to all persons currently acquiring a franchise as of the effective date of this Agreement, although this may change. The Initial Franchise Fee shall be paid in a lump sum in U.S. funds and shall be deemed fully earned and nonrefundable in consideration of administrative and other expenses incurred by us in granting this Franchise and for ourlost or deferred opportunity to franchise others.
B. Time Limit for Opening the Business
The Franchisee shall maintain the Business in accordance with the provisions and requirements of Section 12 hereof, and must secure a lease that has been approved by us (as described in Section 12.S) within eighteen (18) months of the execution of this Franchise Agreement ("Effective Date") and open the Business for operation (the "Opening") within twenty-four (24) months from the date of execution of this Franchise Agreement. Upon Franchisee's failure to meet either of the above requirements; then we may, at our sole discretion, terminate the Franchise and this Agreement and retain all fees paid by Franchisee, without breach of this Agreement by us as specified in Section 23.C. The Opening requires that Franchisee has qualified for and has obtained all necessary licenses and permits needed to sell Products and perform Services. We may, in our discretion, grant Franchisee one sixty (60) day extension past the allotted time within which to secure a lease and/or open the Business.
During the term of this Agreement, the Accepted Location shall be used exclusively for the purpose of operating a Franchised Business and shall be located within the Territory. In the event the Business shall be damaged or destroyed by fire or other casualty, or be required to be repaired, Franchisee shall commence the required repair of the Business within thirty (30) days from the date of such casualty or notice of such governmental requirement (or such lesser period as shall be designated by such governmental requirement), and shall complete all required repairs as soon as possible thereafter, in continuity, but in no event later than ninety (90) days from the date of such casualty or requirement of such governmental notice. The minimum acceptable appearance for the refurbished Business will be that which existed just prior to the casualty;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Agreement, franchisees are subject to several fees. The agreement specifies an initial franchise fee of $35,000, which grants the franchisee the right to operate a single Burros & Fries Business within a territory of up to three miles from the business location. This fee covers a regional webpage on the national website, complete training at the corporate headquarters, and access to operational manuals. The initial franchise fee is due upon execution of the Franchise Agreement and is nonrefundable.
In addition to the initial franchise fee, Burros Fries franchisees must pay a System Advertising Fee. This fee is due on or before the fifth day of each month, calculated from the prior month's gross revenue. The funds collected are deposited into the System Advertising Account, which Burros Fries uses for technology and new product development, kitchen equipment development, and national advertising or public relations programs. Burros Fries has sole discretion over these programs, including creative concepts, materials, and media used.
Franchisees should note that failure to pay the System Advertising Fees constitutes a material breach of the Franchise Agreement, potentially leading to legal remedies and removal from advertising or marketing materials. Burros Fries is not obligated to spend more on advertising and marketing than the amount available in the fund, and any unspent balance may be carried over to subsequent years. Franchisees are also responsible for local advertising efforts, though the specific details of these local advertising requirements are not detailed in this section.