Under what conditions will a Burros Fries franchisee's license to the software terminate?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
ee's lease. We may extend this period an additional thirty (30) days at our discretion and failure of Franchisee to comply may result in termination of this Agreement. Upon termination, the Franchisee must return to us the System (including
all materials), and we have the first right of refusal to purchase all Assets (as described in Section 24.G), but any such purchase price will be reduced to account for the Loss the Franchisee incurred.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
Based on the 2024 Burros Fries Franchise Disclosure Document, the specific conditions under which a franchisee's software license terminates are not explicitly detailed in the provided excerpts. However, the FDD does outline general termination conditions that would likely also terminate the software license.
According to Item 22, the franchise agreement can be terminated earlier than its full term. If a Burros Fries franchisee experiences a significant loss that materially impairs the business, Burros Fries may require the franchisee to repair the existing business or find an alternative location within 90 days, with a possible 30-day extension at Burros Fries' discretion. Failure to comply with these requirements may result in the termination of the franchise agreement. Upon termination, the franchisee must return the System, including all materials, to Burros Fries.
Additionally, the franchisee's obligations upon termination or expiration of the agreement include immediately ceasing the use of any confidential information, trade secrets, procedures, and descriptions of products and services associated with Burros Fries. This extends to names and marks, proprietary marks, slogans, symbols, signage, logos, and devices associated with the system. The franchisee must also stop operating the business and cannot represent themselves as a current or former franchisee. These stipulations suggest that access to proprietary software would also cease upon termination or expiration of the franchise agreement.
To fully understand the specific conditions for software license termination, a prospective Burros Fries franchisee should directly ask the franchisor for clarification. Specifically, they should inquire about what events trigger termination, how the software must be returned or uninstalled, and whether there are any penalties associated with the software license termination.