Upon termination or expiration of the Burros Fries Franchise Agreement, what is a franchisee obligated to transfer to Burros Fries or its designee?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Territory, effective ten (10) days after delivery of written notice to Franchisee.
24. FRANCHISEE'S OBLIGATIONS UPON TERMINATION OR EXPIRATION
A. Franchisee Shall Cease Using Names and Marks
Franchisee further agrees that, upon termination or expiration of this Agreement, Franchisee shall immediately and permanently cease to use, by advertising, or any manner whatsoever, any Confidential Information, methods, trade secrets, procedures, descriptions of Products and Services associated with us and the Names and Marks and any proprietary marks and distinctive forms, slogans, symbols, signage, logos or devices associated with the System. In particular, Franchisee shall cease to use, without limitation, all signage (this includes vehicles with graphics, if applicable), advertising materials, menus, stationery, forms and any other articles, which display the Names and Marks. Franchisee shall make or cause to be made, at its expense, changes directed by us in signage, vehicles (if applicable), building and structures so as to effectively distinguish the surviving business entity, if any, from itsformer appearance and from other existing Burros & Fries Businesses. Franchisee shall comply with the covenant not to compete and the agreement to maintain the confidentiality of proprietary information, as well as return all information that is considered to be Confidential Information under the terms and conditions of this Agreement back to us.
B. Franchisee Shall Cease Operating the Business & Refrain from Notifying Guests
Franchisee shall immediately cease to operate its Business and shall not thereafter, directly or indirectly, represent itself to the public or hold itself out as a present or former franchisee of ours.
In addition, Franchisee shall not give notice of termination or expiration of this Agreement to Franchisee's guests without our prior written consent.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee has several obligations. The franchisee must immediately and permanently cease using any Confidential Information, methods, trade secrets, procedures, descriptions of Products and Services associated with Burros Fries, as well as the Names and Marks and any proprietary marks and distinctive forms, slogans, symbols, signage, logos or devices associated with the Burros Fries system. This includes stopping the use of all signage, advertising materials, menus, stationery, forms, and any other articles displaying the Names and Marks.
Furthermore, the franchisee is responsible for making changes to signage, vehicles, buildings, and structures at their own expense, as directed by Burros Fries, to differentiate the business from its former appearance and from other existing Burros Fries businesses. The franchisee must also comply with the covenant not to compete and maintain the confidentiality of proprietary information, returning all Confidential Information to Burros Fries.
In addition, the franchisee must cease operating the Business immediately and cannot represent themselves as a current or former Burros Fries franchisee. The franchisee is prohibited from notifying guests of the termination or expiration of the agreement without prior written consent from Burros Fries, as Burros Fries retains the sole right to notify guests. All existing guest and account lists of the Franchisee shall be Burros Fries' property.