What is 'Target Marketing' in relation to a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
in general to sell retail items and/or provide catering services by any means outside of your Territory; and must not specifically engage in target marketing ("Target Marketing") within the Territory of another Burros & Fries Business (franchise and/or a company/affiliate owned business). Target Marketing means a concerted effort by a franchisee to solicit and obtain business through any type of advertisement or marketing, directed at all or a portion of another franchisee's territory. We will use commercially reasonable efforts to enforce this requirement regarding Target Marketing if you or any other franchisee violates it.
If you are asked to conduct off-site events (such as: community events, consumer shows, festivals, expos, etc.) to promote your Business or provide catering services in another geographical area in which there is another franchisee or company-owned business you must immediately refer that request to the franchisee in that geographical area or directly to us. If the other franchisee or company-owned business determines it in the best interest for you to conduct such off-site event or perform such catering services, then you can immediately proceed. If there is not a Burros & Fries Business in that geographical area then you can immediately conduct such off-site event or perform catering services, however you must be prepared to refer such off-site event or catering business to another franchisee when that unassigned area is purchased. If during the term of the Franchise Agreement, you are unable to promptly and properly provide services and/or products due to excessive work or other cause then you must refer that person or business to another franchisee in the System or to us. For any default of the Franchise Agreement, as an alternative to terminate, we may modify or completely eliminate any rights that you may have with respect to the protected status of your Territory, effective ten (10) days after delivery of written notice to you. In addition, we may modify or eliminate completely, the Territory (Franchise Agreement Sections 6, 12.H and 23.F).
We encourage the owners of all Franchised Businesses to work out a referral relationship and advertising strategy or arrangement if they are within close proximity of each other (defined as being within a ten-mile radius of each other). We must be notified of all such arrangements.
Source: Item 12 — TERRITORY (FDD pages 38–40)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, Target Marketing is defined as a specific effort by a franchisee to actively seek and secure business through advertising or marketing that is directed towards all or a portion of another franchisee's territory. Burros Fries will use commercially reasonable efforts to enforce the restrictions regarding Target Marketing if a franchisee violates it.
This means that while franchisees are encouraged to market within their own territory, they are restricted from intentionally targeting customers located within another franchisee's designated area. This policy aims to protect each franchisee's customer base and prevent conflicts between franchise locations. Franchisees are allowed to serve guests and sell retail items to anyone who comes to their location, as long as the sales do not result from Target Marketing activities.
If a Burros Fries franchisee is asked to conduct off-site events or provide catering services in an area where another franchisee or company-owned business exists, the request must be referred to that franchisee or directly to Burros Fries. If the other franchisee or company-owned business agrees, the franchisee can proceed with the event or services. If there isn't a Burros Fries business in that area, the franchisee can proceed but must be prepared to refer the business to a new franchisee if the area is assigned in the future. Franchisees are encouraged to develop referral relationships and advertising strategies with other franchisees within a ten-mile radius, with notification to Burros Fries required for such arrangements.
Burros Fries retains the right to modify or eliminate a franchisee's territorial rights if the franchisee defaults on the Franchise Agreement. This could involve altering or completely removing the protected status of the territory, effective ten days after written notice. This provision underscores the importance of adhering to the terms of the Franchise Agreement to maintain the benefits of the protected territory.