Are Burros Fries System Advertising Fund contributions used to sell additional franchises?

According to Burros Fries's 2024 Franchise Disclosure Document, the System Advertising Fund contributions are not used to sell additional franchises. This fund is mentioned in Item 11, which covers the franchisor's assistance, advertising, computer systems, and training.

The System Advertising Fund is primarily used for ongoing technology and new product development, as well as national advertising efforts that Burros Fries deems appropriate to promote the system. These efforts are intended to benefit all franchised businesses. The franchisor has sole discretion over the creative concepts, materials, endorsements, and media used in these programs, as well as their placement and allocation.

Franchisees contribute 1% to 3% of gross revenues per calendar month to the System Advertising Fund. While Burros Fries may increase or reduce this contribution, any increase will not exceed 1% per year with 90 days' written notice, and the total contribution will not exceed 3% of gross revenue per month. These contributions are kept separate from Burros Fries's other funds and are not used for general operating expenses, except for reasonable salaries, administrative costs, travel expenses, and overhead related to administering the fund and its programs.