What is a franchisee obligated to do regarding the development and operation of a Dickeys Barbecue Pit restaurant?
Dickeys_Barbecue_Pit Franchise · 2024 FDDAnswer from 2024 FDD Document
1.1 GRANT. Dickey's hereby grants to you, upon the terms and conditions in this Agreement, the right and franchise, and you undertake the obligation, to develop and operate a "Dickey's Barbecue Pit" Restaurant (your "Restaurant" or "franchised business") and to use, solely in connection with your operation of the Restaurant, the Proprietary Marks and the System, as such may be changed, improved, and further developed by Dickey's from time to time, only at the Accepted Location (as defined in Article 1.2) within the Assigned Area (as defined in Article 1.3).
1.2 ACCEPTED LOCATION. The "Accepted Location" shall be the leased site for your Restaurant in the Assigned Area accepted by Dickey's pursuant to Article 7.4. You shall not relocate the franchised business without the prior written consent of Dickey's. This Agreement does not grant you the right or franchise to operate the Restaurant or to offer or sell any products or services described under this Agreement at or from any other location, except for catering and delivery services you are required to offer from your Restaurant in accordance with Dickey's policies and procedures.
7.10 UTILITIES. Prior to opening and commencing operation of the Restaurant, Dickey's may require you to provide Dickey's with a copy of all utility contracts (each a "Utility Contract") you enter into with utility providers (each a "Utility Provider") in connection with your operations at the Restaurant, including electricity, natural gas, sewage and sanitation and water (collectively, the "Utilities"). If the term of any Utility Contract expires before the term of this Agreement expires, you shall execute a renewal or new Utility Contract as required for the continued uninterrupted operation of the Restaurant at the Accepted Location during the term of this Agreement. You must provide Dickey's with a copy of any renewal or new Utility Contract within five (5) days of executing such Utility Contract.
7.11 COMMENCE BUSINESS. You acknowledge that time is of the essence with respect to opening and commencing business operations of your Restaurant. Subject to your compliance with the conditions stated below, you are obligated to open your Restaurant and commence business on or before the expiration of twelve (12) months after the Effective Date of this Agreement, unless you obtain an extension of such time period from Dickey's in writing or unless otherwise provided in a Development Agreement between you and Dickey's. Prior to opening, you shall complete all exterior and interior preparations for your Restaurant, including installation of equipment, fixtures, furniture, chairs, tables, lights, kitchen equipment, the barbecue pit, and signage pursuant to the plans and specifications and from vendors approved by Dickey's. You shall comply with all other pre-opening obligations to Dickey's satisfaction, including but not limited to, those obligations described in Articles 4.1, 6.1, 7, 8, 9 and 12. If you fail to comply with any of these obligations, Dickey's shall have the right to prohibit you from commencing business. Your failure to open your Restaurant and commence business in accordance with the foregoing shall be deemed an event of default under Article 16.
ARTICLE 8. RESTAURANT OPERATIONS
8.25 CATERING.You shall at all times offer catering services in accordance with Dickey's policies and procedures. You shall be required to maintain at least one vehicle bearing the Dickey's logo and other identifying trade dress and promotional information as required by Dickey's in order to perform such services. You shall participate in Dickey's catering hotline centralizing catering orders and requests and comply with Dickey's policies and procedures regarding the hotline. You acknowledge that Dickey's reserves the right to suspend or terminate your hotline and any other catering lead referrals and redirect them to other Dickey's Restaurants for service if Dickey's determines that you (i) do not comply with Dickey's policies and procedures, (ii) are not using suppliers approved by Dickey's for all items you are required to obtain from approved suppliers, or (iii) provide catering service that is deficient or is the subject of customer complaints Dickey's deems to be unacceptable. You also acknowledge that Dickey's reserves the right to direct any general catering request received through Dickey's catering hotline to any Dickey's franchisee based on such franchisee's experience, efficiency, relationship with or proximity to the customer placing the order.
Source: Item 22 — CONTRACTS (FDD pages 95–96)
What This Means (2024 FDD)
According to Dickeys Barbecue Pit's 2024 Franchise Disclosure Document, a franchisee is obligated to develop and operate a Dickeys Barbecue Pit restaurant according to the terms and conditions outlined in the Franchise Agreement. This includes using the Proprietary Marks and the System as Dickeys Barbecue Pit refines it, but only at the location that Dickeys Barbecue Pit has accepted. The franchisee cannot move the franchised business without Dickeys Barbecue Pit's permission. The franchisee can only operate at the approved location, except for catering and delivery services that the franchisee must offer.
Prior to opening the Dickeys Barbecue Pit restaurant, the franchisee may be required to provide copies of all utility contracts, such as electricity, natural gas, sewage and sanitation, and water, to Dickeys Barbecue Pit. If these contracts expire before the franchise agreement, the franchisee must renew or create new contracts to ensure continuous operation. Copies of these contracts must be provided to Dickeys Barbecue Pit within five days of execution. The franchisee is obligated to open the restaurant within 12 months of the agreement's effective date, unless an extension is granted or a Development Agreement specifies otherwise.
The franchisee must complete all interior and exterior preparations, including installing equipment, furniture, and signage according to Dickeys Barbecue Pit's approved plans and vendors. Compliance with pre-opening obligations outlined in Articles 4.1, 6.1, 7, 8, 9, and 12 is mandatory. Failure to meet these obligations can result in Dickeys Barbecue Pit prohibiting the franchisee from opening the restaurant, which is considered a default under Article 16. The franchisee must offer catering services at all times, adhering to Dickeys Barbecue Pit's policies and procedures, and maintain at least one vehicle with the Dickeys Barbecue Pit logo for these services. The franchisee must also participate in Dickeys Barbecue Pit's catering hotline and comply with its related policies.