Under what circumstances is a Burros Fries franchisee required to change the name of its franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee further agrees that, upon termination or expiration of this Agreement, Franchisee shall immediately and permanently cease to use, by advertising, or any manner whatsoever, any Confidential Information, methods, trade secrets, procedures, descriptions of Products and Services associated with us and the Names and Marks and any proprietary marks and distinctive forms, slogans, symbols, signage, logos or devices associated with the System. In particular, Franchisee shall cease to use, without limitation, all signage (this includes vehicles with graphics, if applicable), advertising materials, menus, stationery, forms and any other articles, which display the Names and Marks. Franchisee shall make or cause to be made, at its expense, changes directed by us in signage, vehicles (if applicable), building and structures so as to effectively distinguish the surviving business entity, if any, from itsformer appearance and from other existing Burros & Fries Businesses. Franchisee shall comply with the covenant not to compete and the agreement to maintain the confidentiality of proprietary information, as well as return all information that is considered to be Confidential Information under the terms and conditions of this Agreement back to us.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, a franchisee is required to change the name of their franchise under specific circumstances related to the termination or expiration of the Franchise Agreement. Upon termination or expiration, the franchisee must immediately and permanently cease using Burros Fries's confidential information, trade secrets, methods, product descriptions, and, most importantly, the Names and Marks associated with the Burros Fries system. This includes refraining from using any proprietary marks, distinctive forms, slogans, symbols, signage, logos, or devices.
Specifically, the franchisee must discontinue the use of all signage, including those on vehicles (if applicable), advertising materials, menus, stationery, and any other items displaying the Names and Marks. Furthermore, the franchisee is obligated to make changes, at their own expense, to signage, vehicles, buildings, and structures as directed by Burros Fries to effectively differentiate the surviving business entity from its former appearance and from other existing Burros & Fries Businesses. This ensures that the public is not misled into believing that the terminated or expired franchise is still part of the Burros Fries system.
In practical terms, this means that if a Burros Fries franchisee's agreement ends, whether through termination by the franchisor or expiration of the agreed-upon term, they cannot continue to operate under the Burros Fries brand. They must remove all branding elements and take steps to clearly distinguish their business from Burros Fries. This is a standard practice in franchising to protect the brand's integrity and prevent consumer confusion. The franchisee must also comply with non-compete and confidentiality agreements and return all confidential information to Burros Fries.