Under what condition can Burros Fries change the franchise term length?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
The Franchise herein granted for a Burros & Fries Business, shall be for a term of ten (10) years from the date of execution and acceptance (the "Effective Date") of this Agreement by us and subject to earlier termination as herein provided. We reserve the right, with your approval, to change the term to match the premise's lease.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the standard franchise term is ten years. However, Burros Fries reserves the right to modify the term length under a specific condition.
Burros Fries can change the franchise term to align with the term of the premise's lease. This adjustment is not unilaterally decided by Burros Fries; it requires the franchisee's approval. This clause ensures that the franchise agreement's duration is synchronized with the franchisee's lease agreement, which is a practical consideration for the business's physical location.
For a prospective Burros Fries franchisee, this means the initial term of ten years may be altered to match the lease term, but only with their consent. It is important for franchisees to carefully consider the length of their lease and negotiate terms that are mutually agreeable with Burros Fries to avoid potential conflicts or uncertainties regarding the franchise term.