What must the Burros Fries transferee agree to in the written assumption agreement?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee and its Owners and/or Principals will agree not to compete, not to divert business, or attempt to hire employees, after the transfer in accordance with restrictions acceptable to us and substantially similar to those described in Section 19.C of this Agreement; and
Franchisee and its Owners and/or Principals will not directly or indirectly at any time or in any manner (except with respect to other Burros & Fries Business that Franchisee or its Principals own and operate) identify itself or any business as a current or former Burros & Fries business owner or as one of our franchise owners; use any Mark, any colorable imitation of a Mark, or other indicia of a Burros & Fries Business in any manner or for any purpose; or utilize for any purpose any trade name, trade or service mark or other commercial symbol that suggest or indicates a connection or association with us as described in Sections 24.A and 24.C of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, a franchisee and its owners or principals who are transferring their franchise must agree to certain conditions. Specifically, they must agree not to compete with Burros Fries, divert business away from Burros Fries, or attempt to hire employees of Burros Fries after the transfer. These restrictions must be acceptable to Burros Fries and substantially similar to those described in Section 19.C of the Franchise Agreement.
Additionally, the franchisee and its owners/principals must not, directly or indirectly, identify themselves or any business as a current or former Burros Fries business owner, except concerning other Burros & Fries businesses they own and operate. They are prohibited from using any Burros Fries Marks, imitations of those Marks, or any other symbols that suggest a connection with Burros Fries. This includes refraining from using any trade names, service marks, or commercial symbols that indicate an association with Burros Fries, as detailed in Sections 24.A and 24.C of the Franchise Agreement.
These stipulations ensure that a transferring franchisee does not leverage their past association with Burros Fries to unfairly compete or misrepresent their new business ventures. It protects Burros Fries' brand integrity and market position by preventing former franchisees from exploiting the brand's reputation after they have transferred their franchise. Prospective franchisees should carefully review Sections 19.C, 24.A, and 24.C of the Franchise Agreement to fully understand the scope and implications of these post-transfer restrictions.