Under what circumstances is a Burros Fries franchisee required to change the name of their franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Territory, effective ten (10) days after delivery of written notice to Franchisee.
24. FRANCHISEE'S OBLIGATIONS UPON TERMINATION OR EXPIRATION
A. Franchisee Shall Cease Using Names and Marks
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.
B. Franchisee Shall Cease Operating the Business & Refrain from Notifying Guests
Franchisee shall immediately cease to operate its Business and shall not thereafter, directly or indirectly, represent itself to the public or hold itself out as a present or former franchisee of ours.
In addition, Franchisee shall not give notice of termination or expiration of this Agreement to Franchisee's guests without our prior written consent.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, a franchisee is required to change the name of their franchise upon termination or expiration of the Franchise Agreement. Specifically, the franchisee must immediately and permanently cease using Burros & Fries's confidential information, methods, trade secrets, procedures, descriptions of products and services, names and marks, and any proprietary marks and distinctive forms, slogans, symbols, signage, logos, or devices associated with the Burros Fries system. This includes, without limitation, all signage, advertising materials, menus, stationery, forms, and any other articles that display the names and marks.
To effectively distinguish the surviving business entity from its former appearance and from other existing Burros Fries businesses, the franchisee must make changes directed by Burros Fries in signage, vehicles (if applicable), buildings, and structures at their own expense. This ensures that the public is not misled into believing that the terminated or expired franchise is still part of the Burros Fries brand.
In addition to ceasing the use of the Burros Fries name and marks, the franchisee must also stop operating the business and refrain from representing themselves as a current or former Burros Fries franchisee. They are also prohibited from notifying guests of the termination or expiration of the agreement without prior written consent from Burros Fries, as Burros Fries retains the sole right to notify guests in a manner they deem most appropriate. All existing guest and account lists of the franchisee become the property of Burros Fries.