Under what conditions will a Burros Fries franchisee be charged a $1,000 inspection fee?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
agrees to execute all documents that we deem reasonably necessary to carry out such transfer of intellectual property rights to us.
Q. Permit Franchisor to Enter Business
Franchisee shall permit us and our agents or representatives to enter the Business during normal business hours for the purpose of conducting inspections without notice to Franchisee and inspect the operations of the Business, review business operations (which includes photographing and taking video of the operations of the Business for observation purposes) and to remove samples of food and/or non-food products, without payment, for our review to determine if such samples meet our then-current standards and specifications. In addition, we may use secret shoppers to inspect and ensure that unauthorized products, supplies, kitchen equipment and services(as described in Section 12.I) are not being used, offered or sold. Franchisee shall cooperate fully with our representatives in such inspections by rendering such assistance as they may reasonably request, and, upon notice from us or our agents, and without limiting our other rights under this Agreement, shall take such steps as may be deemed necessary to immediately correct any deficiencies detected during such inspections. In the event Franchisee fails or refuses to promptly correct any deficiency detected during such inspection, we shall have the right to make or cause to be made such changes as may be required, at the expense of Franchisee, which expense Franchisee agrees to pay upon demand. In addition, to maintain the highest degree of quality, if Franchisee fails an inspection twice in any two (2) year period the Franchisee will also be responsible for a one thousand one hundred dollars ($1,000) inspection fee (as described in Section 10.G). If Franchisee fails a third (3rd) or additional inspection in the same two (2)
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, a franchisee will be responsible for a $1,000 inspection fee if they fail an inspection twice in any two-year period. This fee is in addition to any other remedies that Burros Fries may pursue under the Franchise Agreement. If a Burros Fries franchisee fails a third or subsequent inspection within the same two-year period, Burros Fries has the option to either charge another $1,000 inspection fee or terminate the Franchise Agreement.
Burros Fries, or their agents/representatives, are permitted to enter the business during normal business hours to conduct inspections without prior notice to the franchisee. These inspections include observing business operations through photographs and videos, and removing food and non-food product samples for review. The purpose of these inspections is to ensure that the franchisee is meeting the brand's standards and specifications. Burros Fries may also use secret shoppers to ensure that unauthorized products, supplies, kitchen equipment, and services are not being used, offered, or sold.
The franchisee is expected to fully cooperate with Burros Fries representatives during inspections and promptly correct any deficiencies identified. If the franchisee fails or refuses to correct these deficiencies, Burros Fries has the right to make the necessary changes at the franchisee's expense, which the franchisee agrees to pay upon demand. This proactive approach ensures that all Burros Fries locations maintain a consistent level of quality and adhere to the brand's standards, protecting the brand's reputation and customer experience.