Will Burros Fries solicit input from franchisees before implementing material changes to the System?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee acknowledges that we have spent considerable time in developing the Products, Services, standards, processes, methods and technology used in the operation of a Burros & Fries Business. Accordingly, Franchisee acknowledges that Franchisee is to use only approved products, supplies, kitchen equipment, vendors, suppliers and services that includes, but is not limited to: ingredients (such as dry goods, our spice packages, sauces, dressings, condiments, etc.), fresh produce, dairy products; beverage products (such as: tea, carbonated drinks, juices and specialty beverages), supplies (such as small wares, disposables, packaging materials, disposables and cooking supplies), any merchandise for sale (such as: shirts, hats, baby bibs, etc.), kitchen equipment (such as: refrigerators, freezers, etc. as described in Item 7), furnishing and fixtures, technology items (such as computers, POS system, sound system, etc.), software, printed menus, signage, uniforms, professional laundry services, merchant services, POS and technology support services and printed advertising materials necessary for the operation of the Business. We may derive income through license fees, promotional fees, advertising allowances, rebates or other monies paid by approved vendors and/or suppliers. We do not know the precise basis of these payments because we have never previously collected them but if we collect such payments we have the discretion to use them as we determine. If we require Franchisee to buy from us, products, supplies or kitchen equipment the price and quality will be comparable to similar products, supplies and kitchen equipment from other sources Franchisee agreesthat we may periodically and upon written notice, add to, modify or change such approved products, supplies, kitchen equipment, vendors and suppliers and there is no limit in our right do so. Franchisee promises to promptly accept and implement, in the operation of its Business, all such additions, modifications and changes at Franchisees expense.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Burros Fries retains sole discretion over changes to the System. The franchise agreement stipulates that Burros Fries may periodically add to, modify, or change approved products, supplies, kitchen equipment, vendors, and suppliers. There is no limit to their right to do so, and franchisees are obligated to promptly accept and implement these changes at their own expense.
Regarding advertising and marketing, Burros Fries has sole discretion over creative concepts, materials, endorsements, and media used in programs to promote their mark. While a Franchisee advisory council may have expenses paid from the System Advertising Account, Burros Fries ultimately directs all advertising programs and determines the composition of geographic territories and market areas.
Overall, the FDD does not explicitly state that Burros Fries will solicit input from franchisees before making material changes to the System. The brand maintains control over essential aspects of the business, including approved products, marketing, and overall system standards. This is a common practice in franchising, allowing franchisors to maintain brand consistency and quality control, but it also means franchisees have limited direct influence on system-wide changes.