Does this section of the Burros Fries agreement require any specific actions from the franchisee?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
You undertake to use your best efforts to ensure that your staff acts as required by this Agreement.
Franchisee has the responsibility for selecting a site for its Business. If Franchisee is leasing a space for the Business, we must review and approve the lease prior to the lease being signed. If the Franchisee is purchasing property, we must review and approve the lease or purchase contract prior to it being signed. We will review and approve or disapprove the location of the Business and will not
Franchisee shall cooperate reasonably with us to ensure that the various actions occur which are necessary to obtain acceptance by us of the Business location. In particular, Franchisee shall furnish any pertinent information as may be reasonably requested by us regarding Franchisee's Business and finances.
Neither Franchisee nor any of its Owners if you are an Entity, officers, directors, agents, employees or independent contractors, except as required in the performance of the duties contemplated by this Agreement, may disclose or use at any time, whether during the term of this Agreement or thereafter, any confidential and proprietary information disclosed to or known by Franchisee or any such person as a result of this Agreement. Such information, includes, but shall not be limited to our confidential matters and trade secrets such as our: strategies for site acquisition, build-out, design and décor specifications; distinctive Products, Services, proprietary recipes, sauces and home-made ice cream; specific food preparation techniques, methods, procedures including standards; specifications and purchasing strategies for all products, supplies and kitchen equipment; inventory management systems, vendors and supplier relationships, cost and pricing strategies, retail center setup, merchandising strategies, procedures for cleanliness, safety, sanitation and quality control; software, service methods and techniques, operational procedures, service standards, employee hiring, training and retention programs; menus, photographs of food, sales, advertising, marketing and promotional materials; forms, contracts, record keeping, reporting procedures and accounting methods, proprietary information conceived, originated, discovered, or developed by Franchisee or by any employee of Franchisee which is not generally known in the trade or industry about our Products or Services, including information relating to discoveries, ideas, production, purchasing, accounting, engineering, website development and design, marketing, merchandising or selling of Products and Services (collectively referred to as "Confidential Information" and further defined in Section 16.A of this Agreement).
Franchisee agrees to take all steps necessary, at Franchisee's expense, to protect the Confidential Information and shall not release it to any person that does not have a need to know, including employees,
Before Franchisee opens a Burros & Fries Franchised Business, Franchisee must purchase insurance coverage from a responsible carrier with a performance rating of A or higher as rated in the most recent edition of Best Insurance Reports (or comparable criteria as we may specify) and Franchisee must maintain such insurance throughout the duration of the initial term of the Franchise Agreement and any renewal terms. Franchisee shall list us as additional insured on all its insurance policies. Franchisee will procure and maintain general liability insurance with a minimum policy limit of $2,000,000 per occurrence and $4,000,000 aggregate (this policy should include general tort, premises damage, personal advertising injury and product liability insurance which covers Franchisee for damages that result in injury from products Franchisee distributes). Plus, property and casualty insurance with a minimum policy limit of $2,000,000 or an amount specified by the us.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the franchise agreement outlines several specific actions and obligations for the franchisee.
First, the franchisee must maintain the confidentiality of Burros Fries' proprietary information, including trade secrets, recipes, operational procedures, and marketing materials, both during and after the term of the agreement. The franchisee is responsible for taking necessary steps, at their own expense, to protect this information and only disclose it to those with a need to know, such as employees, agents, and independent contractors.
Second, the franchisee is responsible for selecting a site for their Burros Fries business, subject to the franchisor's review and approval of the lease or purchase contract. The franchisee must also cooperate with Burros Fries to ensure the business location is accepted, providing any pertinent information regarding their business and finances as requested.
Third, the franchisee is obligated to purchase and maintain specific insurance coverage throughout the term of the agreement, including general liability, property and casualty, employer liability, automobile liability, business interruption, and workers' compensation insurance. The franchisee must list Burros Fries as an additional insured on all policies and maintain minimum policy limits, such as $2,000,000 per occurrence and $4,000,000 aggregate for general liability insurance. The franchisee also undertakes to use their best efforts to ensure that their staff acts as required by the agreement.