Under what circumstances must a Burros Fries franchisee discontinue advertising?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee's failure to pay required System Advertising Fees is a material breach of this Agreement, subjecting Franchisee to all remedies at law and as set forth in this Agreement. We may remove Franchisee from advertising or marketing materials without notice if Franchisee fails to timely remit its System Advertising Fee.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, a franchisee may be removed from advertising or marketing materials without notice if they fail to pay their System Advertising Fee on time. The System Advertising Fee is due on or before the fifth day of each month, covering the prior month's Gross Revenue. This fee goes into the System Advertising Account, which Burros Fries uses for technology development, new product development, kitchen equipment development, and national advertising or public relations programs.
Burros Fries has sole discretion over these programs, including creative concepts, materials, endorsements, and media used. The fund can also be used for local franchisee group advertising, Franchisee advisory council expenses, and other advertising and marketing-related costs. Burros Fries is not obligated to spend more on advertising and marketing than the amount in the Fund, and any unspent balance can be carried over to later years.
This policy underscores the importance of timely payment of advertising fees for Burros Fries franchisees. Failure to meet this obligation can result in immediate removal from advertising campaigns, potentially impacting the franchisee's local marketing efforts and brand visibility. Franchisees should ensure they understand the payment schedule and budget accordingly to avoid any disruption in their advertising and marketing support from Burros Fries.