Does this section of the Burros Fries agreement specify any deadlines for actions to be taken?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
ive 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; however, every effort should be made to have the refurbished Business include the then-current image, design and specifications of a Burros & Fries Business.
As between us and the Franchisee, the Franchisee shall bear the entire risk of any damage, loss, theft or destruction to the Business from any cause whatsoever or requisition of the Business by any governmental entity or the taking of title to the Business by eminent domain or otherwise (collectively, "Loss"). The Franchisee shall advise us in writing within ten (10) days of any such Loss. No such Loss shall relieve the Franchisee of the obligation to pay Royalty Fees and all other amounts owed hereunder.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the franchise agreement outlines several deadlines for franchisees. Specifically, a franchisee must secure a lease approved by Burros Fries within 18 months of the franchise agreement's effective date. Following that, the franchisee has 24 months from the agreement's effective date to open the business for operation. Failure to meet either of these deadlines could result in Burros Fries terminating the franchise agreement and retaining all fees paid by the franchisee. However, Burros Fries may grant a one-time 60-day extension for securing a lease or opening the business.
In the event the Burros Fries business is damaged or destroyed, the franchisee must begin repairs within 30 days of the casualty or notice of governmental requirement, completing all repairs within 90 days. The refurbished business should meet the appearance standards that existed prior to the damage, with efforts made to incorporate the current Burros Fries image and design.
Additionally, if a franchisee seeks to use unapproved vendors, Burros Fries has 30 days to approve or deny the franchisee's written request. Finally, in the event of damage, loss, theft, or destruction to the business, the franchisee must advise Burros Fries in writing within ten days of any such loss. These deadlines are critical for franchisees to adhere to, as failure to do so can lead to penalties, including termination of the franchise agreement.