Under what condition might a Burros Fries franchisee NOT be required to destroy software-related materials after termination?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
- j. In the event Franchisee fails to adhere to any of Franchisee's obligations under this Agreement, or is no longer a franchisee of ours, or this Agreement expires or terminates for any reason, Franchisee will immediately (within five (5) days) terminate the use of the Software and destroy any and all material or information related to the Software or any data generated by use of the Software unless we specifically instruct otherwise;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, a franchisee is generally required to terminate the use of the software and destroy all related materials and data within five days of the franchise agreement's termination or expiration. However, this obligation does not apply if Burros Fries specifically instructs otherwise.
This means that even after the franchise agreement ends, a franchisee might be allowed to retain and use the software and related data if Burros Fries provides explicit instructions permitting them to do so. The FDD does not specify the conditions under which Burros Fries might provide such instructions.
It is important for prospective franchisees to understand that the standard procedure is to cease using and destroy all software-related materials upon termination. Franchisees should seek clarification from Burros Fries regarding potential scenarios where they might be allowed to continue using the software post-termination, and to get any such permission in writing to avoid future disputes.