Is there a deadline for a Burros Fries franchisee to disclose discoveries and ideas to the franchisor?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
P. Disclose Discoveries and Ideas to Franchisor
Franchisee shall promptly disclose to us all products, equipment, discoveries, concepts, methods, techniques, recipes, formulas, processes, photographs, video presentations, promotions, operational procedures, inventions or ideas, whether patentable or not, relating to our business, which are conceived or made by Franchisee or any Owner, agent, employee or independent contractor of Franchisee solely or jointly with others, during the term of this Agreement, whether or not our facilities, materials, or personnel are utilized in the conception or making of such discoveries or ideas. Franchisee hereby acknowledges and agrees that all such products, equipment, discoveries, concepts, methods, techniques, recipes, formulas, processes, photographs, video presentation, promotions, operational procedures, inventions or ideas are the exclusive property of us, and that we shall have no obligation to compensate the Franchisee for any such discovery or idea. However, as a matter of corporate policy, we may, in our sole discretion, create an incentive program to reward Franchisee, its officers, directors, managers, members, partners or shareholders for any such new product, equipment, discovery, concept, method, technique, recipe, formula, process or improvement that we implement throughout the System. Franchisee, its officers, directors, managers, members, partners or shareholders agree to execute all documents deemed reasonably necessary by us to assign all such patent, trade secret, trademark, and copyright rights
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, a franchisee must promptly disclose any products, equipment, discoveries, concepts, methods, techniques, recipes, formulas, processes, photographs, video presentations, promotions, operational procedures, inventions, or ideas related to the Burros Fries business that they or their personnel conceive or create during the term of the Franchise Agreement. This obligation applies whether or not Burros Fries' facilities, materials, or personnel are used in the process.
This means that as soon as a Burros Fries franchisee or their team comes up with a new idea related to the business, they are required to inform Burros Fries. This includes a wide range of innovations, from new recipes to operational improvements. The franchisee acknowledges that these discoveries become the exclusive property of Burros Fries, and the franchisee is not entitled to compensation for them.
However, Burros Fries may, at its discretion, establish an incentive program to reward franchisees and their personnel for innovations that Burros Fries implements across the franchise system. The franchisee agrees to sign any documents necessary to assign patent, trade secret, trademark, and copyright rights to Burros Fries. This clause ensures that Burros Fries maintains control over any new developments or improvements to the Burros Fries system that arise from its franchisees' operations.
For a prospective Burros Fries franchisee, this means that while they are encouraged to innovate and improve their business, any resulting intellectual property belongs to Burros Fries. While there's no guarantee of compensation, there is a possibility of being rewarded through an incentive program if the innovation is adopted system-wide. Franchisees should be aware of this condition and factor it into their expectations regarding ownership and benefits from any creative contributions they make to the Burros Fries system.