Is there a limit to how much the costs and attorney's fees can be for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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| - | |||
|---|---|---|---|
| Audit Expenses | Cost of Audit Fees plus interest at 18% per annum (1.5% per month) up to the maximum interest rate allowed by law. | Ten days after receipt of audit report. | Payable to us only if you understate Gross Revenues by 2% or more. We expect the cost to be between $3,500-$6,500 unless your financial records are not well kept. |
| Costs and Attorney's | Will vary under circumstances. | As Incurred. | Payable as incurred by us in obtaining injunctive relief or the enforcement of any item of the Franchise Agreement. |
| Fees | |||
| Indemnification | Will vary under circumstances. | On Demand. | As Incurred; See Note 4. |
| POS Support | Currently $130-$140 per month for 1 cash register, software and ongoing support. | Monthly. | Payable to our approved vendors. See Note 5 |
| Laundry Service Fees | Currently $1,000-$1,500 per month for professional laundry services | Monthly. | Payable to our approved vendors. See Note 6 |
| Inspection Fee | $1,000 if you fail to pass an inspection for the second time. | On Demand. | Payable to us See Note 7 and Item 8. |
| Renewal Fee | $5,000 | At the time of every renewal for each franchise. | Payable to us for the same protected area. |
| Product, Vendor and Equipment Testing Fee | $300 per product, menu item or vendor. $300 for equipment testing. | On Demand | See Note 8 |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Burros Fries' 2024 Franchise Disclosure Document, the costs and attorney's fees can vary under certain circumstances. These fees are payable as incurred by Burros Fries in obtaining injunctive relief or the enforcement of any item of the Franchise Agreement.
The FDD states that if a franchisee defaults under the agreement and Burros Fries engages an attorney for collection or enforcement, the franchisee must pay all damages, legal fees, and costs to the extent permitted by law. Additionally, franchisees must protect, defend, indemnify, and hold Burros Fries harmless against any claims, lawsuits, or losses arising out of the operation of the franchised business.
Interest and late charges begin to accrue from the due date of payment, and the franchisee must also pay any damages, expenses, collection costs, and reasonable attorney fees Burros Fries incurs when the franchisee does not make the required payments. However, the interest rate cannot exceed 10% per year in California. These costs and fees are non-refundable and are payable only to Burros Fries.