Does Burneys Sweets More's acceptance of a site guarantee the profitability of the business?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the provisions of this Section 5, provided Franchisee is in compliance with its obligations under this Agreement, Franchisor agrees that during the Initial Term it will not establish and operate, nor license any party other than Franchisee to establish and operate, a BURNEY'S SWEETS & MORE Shop at a physical location within the territory set forth in Attachment 1 hereto (the "Territory"), except at Non-Traditional Locations, as defined below. Until such time as the Location is identified and agreed upon in the Franchise Rider or in the Site Selection Acceptance Letter (as defined in the Franchise Rider), no Territory will be granted to Franchisee and Franchisor shall have the right to locate other franchises anywhere Franchisor determines without interfering with any territorial rights of Franchisee. Franchisee shall not solicit business from customers outside of its Territory without receiving Franchisor's prior, written permission. Notwithstanding the foregoing, Franchisor does not warrant or represent that no other BURNEY'S SWEETS & MORE shop will solicit or make any sales within the Territory, and Franchisee hereby expressly acknowledges and agrees that such solicitations or sales may occur within the Territory. Franchisor shall have no duty to protect Franchisee from any such sales, solicitations, or attempted sales. Franchisee recognizes and acknowledges that (i) it will compete with other BURNEY'S SWEETS & MORE shops which are now, or which may in the future be, located near or adjacent to Franchisee's Territory and (ii) that such shops may be owned by Franchisor, its affiliates, and/or third parties.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Burneys Sweets More does not guarantee the profitability of a franchise location, even after site selection acceptance. While Burneys Sweets More grants a territory to the franchisee, this territory is not exclusive until the location is identified and agreed upon in the Franchise Rider or Site Selection Acceptance Letter.
Burneys Sweets More retains the right to establish other franchises anywhere it determines before the location agreement, potentially impacting a franchisee's market. Furthermore, Burneys Sweets More does not warrant that other Burneys Sweets More shops will not solicit or make sales within the franchisee's territory. The franchisee acknowledges that they will compete with other Burneys Sweets More shops, including those owned by the franchisor or its affiliates, located near or adjacent to their territory.
This means that even with an accepted site, a Burneys Sweets More franchisee faces competition from other outlets and alternative distribution channels controlled by the franchisor. The success of the franchise depends on various factors beyond site approval, including market conditions, competition, and the franchisee's operational capabilities. Prospective franchisees should carefully consider these factors and conduct thorough market research before investing in a Burneys Sweets More franchise.