What specific financial statements are required in the Preliminary Due Diligence Package for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
isee starts business, implementation of a marketing plan, Franchisee's management skills, economic conditions, competition in the surrounding area and other factors.
Franchisee hereby certifies that he or she has reviewed the estimated initial investment and startup costs as detailed in the Franchise Disclosure Document, and has sufficient cash resources available to meet said expenses. 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 nation
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the specific financial statements required in the Preliminary Due Diligence Package for a Burros Fries franchise are not explicitly detailed in the provided excerpts. While Item 22 generally discusses contracts and agreements related to the franchise, it does not specify the exact financial documents a prospective franchisee must submit as part of their due diligence.
The FDD excerpts do mention the franchisee's initial investment and the importance of having sufficient cash resources available to meet start-up costs, including the initial franchise fee of $35,000. However, this information pertains more to the franchisee's financial readiness rather than the specific financial statements required by Burros Fries for due diligence purposes.
Therefore, a potential Burros Fries franchisee should directly inquire with the franchisor about the precise financial statements needed for the Preliminary Due Diligence Package. This would include understanding what specific documents (e.g., balance sheets, income statements, tax returns) and what time period the franchisor requires to properly assess the franchisee's financial stability and suitability.