Has the Burros Fries System Advertising Fund been established before the date of the Disclosure Document?

According to Burros Fries' 2024 Franchise Disclosure Document, the System Advertising Fund has not been established as of the date of the document. However, Burros Fries reserves the right to institute, maintain, and administer a System Advertising Fund in the future to support technology, new product development, and national advertising.

Franchisees will be required to contribute one to three percent (1%-3%) of Gross Revenues per calendar month for the System Advertising contribution. Burros Fries may increase, discontinue, or reduce the contribution, but 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. Franchisees will start contributing at 1% per year when the program is established, with contributions due by the fifth (5th) day of the month once the Business is open.

The funds will be accounted for separately and will not be used for Burros Fries' general operating expenses, except for reasonable salaries, administrative costs, travel expenses, and overhead related to administering the Fund and its programs. Usage of the Fund will include ongoing development of the national website and new products. Burros Fries may also form a franchisee-elected Franchisee Advisory Council to advise on System Advertising Fund usage and advertising policies, but Burros Fries retains all decision-making authority.

Burros Fries will prepare an annual un-audited statement of monies collected and costs incurred by the Fund, available 120 days after the end of their fiscal year, and will furnish it to franchisees upon written request. The media in which advertisements may be disseminated include print ads, signs, billboards, and radio and may be conducted on a regional or national basis.