What is the ultimate decision-making responsibility for the Burros Fries system vested in?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
Any rights not expressly granted to the Franchisee are reserved to us. Such rights reserved to us include but are not limited to the following:
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- Own and/or operate ourselves, and/or authorize others to own and/or operate:
a) Any kind of business in the Territory which is not substantially similar to a Burros & Fries Business, whether or not using the Marks and System and on any terms and conditions we deem appropriate; and
b) Any kind of business outside of the Territory, including, without limitation, Burros & Fries Businesses, whether or not using Burros & Fries Marks and System and on any terms and conditions we deem appropriate;
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- Develop, distribute and sell Burros & Fries labeled and branded (or any other brand) products and kitchen equipment (if developed) to anyone located anywhere (including within the Territory, if applicable) using any channel of distribution other than the operation of a Burros & Fries Business in the Territory and on any terms and conditions we deem appropriate;
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- Develop or become associated with concepts other than the Business franchised hereunder (including dual branding and/or other franchise systems), whether or not using the System and/or the Marks, and award franchises under such other concepts for businesses located and/or operating anywhere;
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- Acquire, be acquired by, sell our assets, sell our stock, membership units, or partnership units to, merge, affiliate with or engage in any transaction with other businesses (whether competitive or not), with units located anywhere.
Such transactions may include (but are not limited to) arrangements involving competing outlets and brand conversions (to or from the Burros & Fries Marks and System).
Franchisee agrees to participate at its expense in any such conversion as instructed by us;
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- We may choose in our Business Judgment (as defined in Section 21 of this Agreement) to advertise, offer and sell Products and/or provide Services through the Internet and other similar venues (no matter where the person is located) without paying any compensation to Franchisee.
The Internet is a channel of distribution reserved exclusively to us and Franchisee may not independently market on the Internet or conduct e-commerce, without our written consent; and
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, Burros & Fries Franchise, Inc. retains rights not expressly granted to the franchisee. These reserved rights cover various aspects of the business and brand. Burros Fries maintains the authority to operate or authorize others to operate businesses, even those not substantially similar to a Burros & Fries restaurant, both within and outside the franchisee's territory. This includes the right to use or not use the Burros Fries marks and system, and on any terms and conditions Burros Fries deems appropriate.
Burros Fries also reserves the right to develop, distribute, and sell Burros & Fries branded products and kitchen equipment through any channel of distribution other than the franchisee's restaurant operation. They can also develop or associate with other business concepts, including dual branding, and award franchises for these concepts anywhere, regardless of whether they use the Burros Fries system or marks. Furthermore, Burros Fries has the power to engage in transactions with other businesses, including mergers, acquisitions, or affiliations, even with competitors, and these transactions may involve brand conversions. The franchisee is obligated to participate in any such conversion at their own expense, as instructed by Burros Fries.
Burros Fries retains exclusive control over internet marketing and e-commerce, and franchisees cannot independently market on the internet without written consent. This extensive reservation of rights underscores that Burros Fries maintains ultimate decision-making authority over the Burros Fries system, brand, and its evolution, which could impact a franchisee's business and market.