Is site selection an obligation of the Burros Fries franchisee?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
S. Site Selection
Franchisee assumes all costs, liability, expense, and responsibility for locating, obtaining and developing a site for the Franchise Business to be established under the Franchise Agreement and for equipping the Business at such premises. A typical Burros & Fries Business has approximately 2,500- 3,000 square feet of space. The space must be enclosed and separate from other businesses with its own locking door. Franchisee may buy or lease the required real property and improvements from any source and on terms approved by us in writing. Franchisee may not sign a lease (or a contract to purchase the premises, if applicable) for the Business until Franchisee has obtained our written approval. Franchisee must not invest any monies for a site in which Franchisee wishes to open a Business until Franchisee has obtained our written approval for the site which will be made by email or any other form of written communication. On the execution of any lease for the Franchise Business, Franchisee will deliver to us a copy of the executed lease and an option to assume the lease executed by the lessor in favor of us in a form acceptable to us. All improvements to the Business must be approved by us.
FRANCHISEE ACKNOWLEDGES THAT OUR ACCEPTANCE OF A PROSPECTIVE SITE AND THE RENDERING OF ASSISTANCE IN THE SELECTION OF A SITE DOES NOT CONSTITUTE A REPRESENTATION, PROMISE, WARRANTY, OR GUARANTEE BY US THAT A BURROS & FRIES FRANCHISE OPERATED AT THAT SITE WILL BE PROFITABLE OR OTHERWISE SUCCESSFUL.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, franchisees are responsible for site selection. The franchisee bears all costs, liability, and responsibility for finding, securing, and developing a location for their Burros Fries franchise.
The FDD states that a typical Burros Fries location requires approximately 2,500 to 3,000 square feet of enclosed space, separate from other businesses and with its own locking door. Franchisees can either buy or lease the property from any source, but the terms must be approved in writing by Burros Fries. The franchisee cannot sign any lease or purchase agreement until they have received written approval from Burros Fries for the site.
Furthermore, the franchisee is prohibited from investing any money into a site before obtaining written approval from Burros Fries. Upon signing a lease, the franchisee must provide Burros Fries with a copy of the executed lease and an option for Burros Fries to assume the lease if necessary. All improvements to the location must also be approved by Burros Fries. The document emphasizes that Burros Fries's acceptance of a site or assistance in site selection does not guarantee the profitability or success of the franchise at that location.