When does the System Advertising contribution start for a Burros Fries franchisee?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchise Agreement, Section 10.B).
- (i.) You will pay us one to three percent (1%-3%) of Gross Revenues per calendar month for the System Advertising contribution, paid to us, as designated in the Franchise Agreement. We may raise, discontinue or reduce the contribution but the increase will not exceed 1% per year upon 90 days' written notice to you and shall not exceed 3% of Gross Revenue per month but your total contribution will not exceed three percent (3%) of your Gross Revenue in any calendar year for the term of the Agreement. You will begin at one percent (1%) per year if and when the program is established. Contributions are due by the fifth (5th) day of the month (for the prior month) which will start immediately once your Business is open for operation then continues for the term of your Franchise (as described in Item 6). Refer to Item 6 for definition of Gross Revenue.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–38)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the System Advertising contribution starts immediately once the franchisee's business is open for operation. The contribution continues for the term of the Franchise Agreement. The franchisee will pay between one to three percent (1%-3%) of Gross Revenues per calendar month for the System Advertising contribution.
The initial contribution is one percent (1%) per year when the program is established. These contributions are due by the fifth (5th) day of the month for the prior month's revenues. The funds are specifically for technology, new product development, and national advertising to benefit all franchisees.
Burros Fries retains the right to increase, discontinue, or reduce the contribution, but any increase will not exceed 1% per year with 90 days' written notice. The total contribution will not exceed three percent (3%) of Gross Revenue per month or in any calendar year. The System Advertising Fund has not been established before the date of this Disclosure Document.