Will the terms of the renewal agreement for a Burros Fries franchise be the same as the original agreement?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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7. TERM AND RENEWAL OF AGREEMENT
A. Term
The Franchise herein granted for a Burros & Fries Business, shall be for a term of ten (10) years from the date of execution and acceptance (the "Effective Date") of this Agreement by us and subject to earlier termination as herein provided. We reserve the right, with your approval, to change the term to match the premise's lease.
B. Renewal
Franchisee shall have the option to renew this Agreement for up to two (2) additional terms of ten (10) years each, provided we are still offering franchises at that time, and further subject to the following conditions, all of which must be met prior to renewal:
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- Franchisee shall give us written notice of its election to renew not more that twelve (12) months and not less than six (6) months prior to the end of the then current term. We will respond to Franchisee's written notice to renew no later than thirty (30) days after receipt of such notice by email or any other form of written communication;
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Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the Burros Fries franchise agreement is granted for an initial term of ten years. A franchisee has the option to renew the agreement for up to two additional terms of ten years each, provided that Burros Fries is still offering franchises at that time.
To be eligible for renewal, the franchisee must provide written notice of their election to renew not more than twelve months and not less than six months before the end of the current term. Burros Fries will respond to the franchisee's notice within thirty days of receipt. The franchisee must not be in default under any provision of the agreement or any other agreement with Burros Fries and must have complied with all terms and conditions of all agreements during their terms.
The FDD does not specify whether the terms of the renewal agreement will be the same as the original agreement. For clarification, a prospective franchisee should inquire with Burros Fries about whether the renewal agreement contains the same terms and conditions as the original franchise agreement, or if there are any changes to be expected.