Under what conditions can a Burros Fries franchisee conduct off-site events to promote their business?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee is asked to conduct business at an off-site event (such as: community events, consumer shows, festivals, expos, etc.) or perform Services outside its Territory in which there is another franchise or company-owned business, Franchisee must immediately refer that request to the franchisee in that geographical area or directly to us. Franchisee must not conduct business at any off-site event or perform any Services outside its Territory if another franchise or company-owned business is operating in that area. If we (where there is a company-owned business) or the other franchise determines it is in the best interest of the person or business for Franchisee to conduct such off-site event or perform Services, then Franchise can immediately proceed. If there is not a Burros & Fries Business in that other area, then Franchisee can immediately conduct such off-site event and/or perform such Services, however Franchisee must be prepared to refer the off-site event or the person or business receiving Services to another franchisee when the unassigned area is purchased. We and other franchisees and company-owned businesses must refer off-site events, people and businesses that are within Franchisee's Territory to Franchisee and also reserve the same right to conduct off-site events and/or perform Services within Franchisee's Territory if it is determined, to be in the person's or businesses' best interest, by the franchisee of that territory.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, a franchisee's ability to conduct business at off-site events, such as community events, consumer shows, festivals, and expos, or perform services outside of their designated territory is subject to specific conditions. If another Burros Fries franchise or a company-owned business operates in the area where the off-site event is to take place, the franchisee must first refer the request to the franchisee in that geographical area or directly to Burros Fries.
The franchisee cannot proceed with the off-site event or services if another franchise or company-owned business is already operating in that area, unless the other franchise or Burros Fries determines that it is in the best interest of the person or business for the franchisee to conduct the event or perform the services. If there is no existing Burros Fries business in the area, the franchisee can proceed with the off-site event or services. However, they must be prepared to refer the event or the person or business receiving services to another franchisee if the unassigned area is later purchased.
Burros Fries and other franchisees or company-owned businesses are required to refer off-site events, people, and businesses within a franchisee's territory to that franchisee. However, they also reserve the right to conduct off-site events or perform services within the franchisee's territory if it is determined to be in the best interest of the person or business by the franchisee of that territory. Failure to comply with these referral requirements can result in termination of the franchise agreement or modification/elimination of the franchisee's protected territory rights.