How is the administrative fee calculated for Burneys Sweets More's approval of an alternate supplier?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
If you request that we evaluate a good, service, or supplier, you will pay all fees and costs incurred by us to obtain the necessary information and to conduct the evaluation. Additionally, if the supply or equipment source is approved you will pay us at the time the alternate supplier is approved and prior to ordering from the alternate supplier, an administrative fee equal to 15% of the value of the item(s) purchased. We reserve the right to revoke approval for any item or supplier for any reason and you must cease to use the item or supplier upon 30 days' notice from us.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–23)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, if a franchisee requests the evaluation of a new supplier, good, or service and Burneys Sweets More approves it, the franchisee must pay an administrative fee. This fee is equal to 15% of the value of the items purchased from the alternate supplier. The fee is due at the time the alternate supplier is approved and before the franchisee places any orders with them.
This administrative fee is in addition to any fees and costs Burneys Sweets More incurs to obtain the necessary information and conduct the evaluation of the proposed supplier. Burneys Sweets More retains the right to revoke approval for any item or supplier at any time, requiring the franchisee to cease using the item or supplier within 30 days' notice.
This policy means that franchisees need to carefully consider the potential cost savings from an alternate supplier against the 15% administrative fee and any initial evaluation costs. It also highlights the importance of Burneys Sweets More's control over the supply chain and their ability to generate revenue through supplier relationships. Franchisees should factor in these costs and the potential for supplier changes when projecting their operating expenses and profitability.