Under what conditions might Burros Fries refuse to renew or extend a franchise agreement?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
under any provision of the Agreement, any amendment hereof or successor hereto, or any other agreement between us and Franchisee, and
Franchisee shall have complied with all the terms and conditions of all such agreements during the terms thereof;
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- Franchisee's right to renew is contingent on satisfactory performance of and full compliance with this Agreement and any renewal agreement. We may refuse to renew or extend the Franchise if: (a) Franchisee has failed to use its best efforts to operate the Franchised Business to our satisfaction; (b) the Franchise is terminable by law or under this Agreement; (c) Franchisee fails to give timely written notice of its exercise of its renewal option; (d) we are withdrawing from franchising in the geographic market Franchisee serves; (e) Franchisee fails to satisfy our then-current standards for new franchisees; or (f) Franchisee is in default of this Agreement;
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- Franchisee shall have satisfied all monetary obligations owed by Franchisee to us and our affiliates, and shall have timely met these obligations throughout the previousterm;
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- Franchisee shall execute, before the renewal term, our then-current form of Agreement, which agreement shall supersede this Agreement in all respects, and the terms of which may differ from the terms of this Agreement. We will charge Franchisee a $5,000 renewal fee and renewal may be for the same protected area or Non-Traditional Location as outlined in Section 6 (if applicable), above;
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- Franchisee shall comply with our then-current qualification and training requirements;
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- Franchisee must execute a general release, in a form prescribed by us releasing any and all claims against us and our affiliates, and their respective owners, officers, directors, agents and employees, if such release is not in conflict with any local, state or federal laws; and
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- Franchisee shall upgrade, remodel and/or refurbish the Business (both inside and outside) in order to meet our then-current standards. Graphics, signage and all kitchen equipment, furnishing, fixtures, technology items (such as a point of sale ("POS") system, computers, tablets, camera surveillance system, sound system, etc.) located at the Business must be updated to meet our then-current requirements.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, a franchisee's right to renew their franchise agreement is contingent upon satisfactory performance and full compliance with the existing agreement and any renewal agreement. Burros Fries has specific conditions under which they may refuse to renew or extend the franchise.
Burros Fries may refuse renewal if the franchisee has not used their best efforts to operate the Franchised Business to Burros Fries's satisfaction, if the franchise is terminable by law or under the existing agreement, or if the franchisee fails to provide timely written notice of their intent to exercise the renewal option. Additionally, Burros Fries may refuse renewal if they are withdrawing from franchising in the geographic market the franchisee serves, if the franchisee fails to meet the then-current standards for new franchisees, or if the franchisee is in default of the existing agreement.
To be eligible for renewal, the franchisee must have satisfied all monetary obligations to Burros Fries and its affiliates, having met these obligations in a timely manner throughout the previous term. The franchisee must also execute Burros Fries's then-current form of agreement before the renewal term, which will supersede the existing agreement and may have different terms. A $5,000 renewal fee will be charged. The franchisee must also comply with Burros Fries's then-current qualification and training requirements, execute a general release of claims against Burros Fries and its affiliates (provided such release does not conflict with local, state, or federal laws), and upgrade, remodel, or refurbish the Business to meet Burros Fries's then-current standards, including updates to graphics, signage, kitchen equipment, furnishings, fixtures, and technology items, all at the franchisee's expense.