Under what conditions can Burros Fries increase the per-day fee for continuing education sessions?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
ts associated with attending the conference such as travel, food, accommodations and other expenses. We reserve the right to increase the fee a reasonable amount based on reasonable criteria.
- iii. We may provide continuing education sessions ("Continuing Education") at locations designated by it but most likely at our headquarters. Continuing Education sessions may have a registration charge of three hundred dollars ($300) per day per person. Franchisee is responsible for all costs associated with attending such sessions such as travel, food and accommodations or ourexpenses (such as travel, food and accommodations) if we provide Continuing Education sessions onsite at Franchisee's Business. The Continuing Education sessions will normally not exceed one (1) day and it is expected we will at least have quarterly sessions subject to special need. The content will cover particular aspects of the Franchise including but not limited to new Products and Services, recipes and food preparation; updated lists of approved products, supplies, kitchen equipment or services Franchisee is authorized to use; operational standards, technology and software develop
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the franchisor reserves the right to increase the per-day fee for continuing education sessions. These sessions may have a registration charge of $300 per day per person. The franchisee is responsible for all costs associated with attending these sessions, such as travel, food, and accommodations, or the franchisor's expenses if the sessions are held onsite at the franchisee's business. These sessions typically do not exceed one day, and the franchisor expects to hold them at least quarterly, subject to special needs. The content will cover various aspects of the franchise, including new products and services, recipes and food preparation, updated lists of approved products, supplies, kitchen equipment or services, operational standards, technology and software developments, sales, merchandising, promotional programs, marketing, and administration.
Burros Fries retains the discretion to raise the per-day fee for these continuing education sessions. However, any increase must be a "reasonable amount based on reasonable criteria." The FDD does not specify what constitutes "reasonable criteria," leaving it open to interpretation by Burros Fries.
For a prospective Burros Fries franchisee, this means that the cost of continuing education could potentially increase during the term of the franchise agreement. It is important to factor in potential increases to the $300 per day fee when budgeting for ongoing training and development. A prospective franchisee should seek clarification from Burros Fries on what specific criteria would justify an increase in the continuing education fee to better understand the potential financial implications.