Can Burros Fries terminate the franchise agreement for a franchisee's failure to pay required sums?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
onstruction as of the expiration or termination of, or the transfer of all or your interest in, the Franchise Agreement.
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- You undertake to use your best efforts to ensure that your staff acts as required by this Agreement.
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- You agree that in the event of a breach of this Agreement, we would be irreparably injured and be without an adequate remedy at law. Therefore, in the event of such a breach, or threatened or attempted breach of any of the provisions hereof, we shall be entitled to enforce this Agreement and shall be entitled, in addition to any other remedies which are available to it at law or in equity, including the right to terminate the Franchise Agreement, to a temporary and/or permanent injunction and a decree for the specific performance of the terms of this Agreement, without the necessity of showing actual or threatened harm and without being required to furnish a bond
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Burros Fries retains the right to terminate the franchise agreement if a franchisee fails to adhere to the agreement, which includes the obligation to pay all required fees. Specifically, if a franchisee breaches the agreement, Burros Fries would be irreparably injured and lack an adequate remedy at law.
In the event of a breach, or threatened breach, Burros Fries is entitled to enforce the agreement. They can seek a temporary or permanent injunction and a decree for specific performance of the agreement's terms. This can be done without needing to demonstrate actual or threatened harm and without having to provide a bond or other security.
This means that if a Burros Fries franchisee fails to pay royalty fees or other amounts owed, Burros Fries can take legal action to enforce the agreement, including seeking an injunction to compel payment or terminating the franchise agreement altogether. The franchisee is also responsible for covering all expenses, including court costs and reasonable legal fees, incurred by Burros Fries in enforcing the agreement.