Is the Burros Fries training fee subject to increase from time to time?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
By executing this Franchise Agreement, the applicant agrees to become a Franchisee and pay an Initial Franchise Fee in the amount of Thirty-Five Thousand dollars ($35,000) for a Burros & Fries Business. This Initial Franchise Fee includes a license to operate a single Burros & Fries Business in a Territory that is up to three (3) miles driven in any direction from the Business determined by boundaries as described in Section 6 of this Agreement. The Initial Franchise Fee includes a regional web page housed within our national website, the complete training program at our corporate headquarters and manuals. We choose to allocate some of that time to pre-opening or grand opening assistance.
The Initial Franchise Fee per this Agreement is due upon execution of this Franchise Agreement. The Initial Franchise Fee is uniform as to all persons currently acquiring a franchise as of the effective date of this Agreement, although this may change.
- i. We shall also offer additional training resources to the Franchisee to be determined by us, for the operation, advertising and promotion of the Business including refresher training programs, seminars, workshops, annual conference and information may be available through the intranet system on our website for the benefit of the Franchisee and the Franchisee's employees. We may charge a reasonable fee for additional training if deemed appropriate (distinct from continuing education) but not to exceed the additional training fee. All traveling, food, accommodations and other expenses incurred by the Franchisee or Franchisee's representatives or employees attending additional training shall be paid by Franchisee.
- ii. We may conduct an annual conference at such place as shall be designated by it for all Franchisees but initially will most likely be our headquarters. A registration fee for each participant may be required not to exceed one thousand dollars ($1,000) per person and its expenses and Franchisee will be responsible for costs associated with attending the conference such as travel, food, accommodations and other expenses. We reserve the right to increase the fee a reasonable amount based on reasonable criteria.
- iii. We may provide continuing education sessions ("Continuing Education") at locations designated by it but most likely at our headquarters. Continuing Education sessions may have a registration charge of three hundred dollars ($300) per day per person. Franchisee is responsible for all costs associated with attending such sessions such as travel, food and accommodations or ourexpenses (such as travel, food and accommodations) if we provide Continuing Education sessions onsite at Franchisee's Business. The Continuing Education sessions will normally not exceed one (1) day and it is expected we will at least have quarterly sessions subject to special need. The content will cover particular aspects of the Franchise including but not limited to new Products and Services, recipes and food preparation; updated lists of approved products, supplies, kitchen equipment or services Franchisee is authorized to use; operational standards, technology and software developments; sales, merchandising, promotional programs and marketing; administration and so forth. We reserve the right to increase the per day fee a reasonable amount based on reasonable criteria.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the initial franchise fee includes a complete training program at the corporate headquarters. The initial franchise fee is $35,000. The document specifies that the initial franchise fee is uniform for all new franchisees as of the agreement's effective date, but this is subject to change. This indicates that while the initial franchise fee, which includes the initial training, is currently fixed, Burros Fries reserves the right to modify it in the future.
While the initial training is included in the franchise fee, Burros Fries also offers additional training resources. Burros Fries may charge a reasonable fee for additional training if deemed appropriate, but not to exceed the additional training fee. All traveling, food, accommodations, and other expenses incurred by the franchisee or their representatives attending additional training are the responsibility of the franchisee.
Burros Fries may also conduct an annual conference, with a registration fee not exceeding $1,000 per person. Burros Fries reserves the right to increase this fee a reasonable amount based on reasonable criteria. Additionally, Burros Fries may provide continuing education sessions with a registration charge of $300 per day per person, and they reserve the right to increase the per day fee a reasonable amount based on reasonable criteria. Franchisees are responsible for all costs associated with attending these sessions, including travel, food, and accommodations.
In summary, while the initial training fee included in the franchise fee may change for future franchisees, additional training, conferences, and continuing education sessions are subject to fees that Burros Fries may increase reasonably. Prospective franchisees should consider these potential additional costs when evaluating the overall investment in a Burros Fries franchise.