What are the approved purposes for which a Burneys Sweets More Cooperative must be organized?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provisions shall apply to each Cooperative:
(i) Each Cooperative shall be organized and governed in a form and manner, and shall commence operation on a date, approved in advance by Franchisor in writing.
(ii) Each Cooperative shall be organized for the purposes of producing and conducting general advertising programs and activities for use in and around the applicable geographic area and developing standardized promotional materials for use by the members.
(iii) No advertising programs or materials may be used by the Cooperative or furnished to its members, and no advertising or promotional activities may be conducted by the Cooperative, without the prior written approval of Franchisor. All such programs, materials and planned activities shall be submitted to Franchisor for approval in accordance with the procedure set forth in Section 8(f).
(iv) Members of the Cooperative shall make contributions to the Cooperative in such amounts as are determined by the governing body of the Cooperative. Each member of the Cooperative shall make contributions to the Cooperative on the same basis as the other members, whether owned by Franchisee, another franchisee, Franchisor, or Franchisor's affiliates. In no event shall members be required to contribute more than Four Percent (4%) of monthly Gross Sales.
(v) Franchisee shall make its contributions to the Cooperative on the date and in the manner designated by the Cooperative.
Franchisee shall also submit such statements and reports as may be designated from time to time by the Cooperative.
The Cooperative shall submit to Franchisor such statements and reports as Franchisor may designate from time to time.
The Cooperative shall prepare written governing documents that shall be available to Franchisee and Franchisor for review.
These written governing documents are subject to Franchisor's approval.
The Cooperative is responsible for determining its own voting procedures; however, each BURNEY'S SWEETS & MORE franchised business that is a member of the Cooperative is entitled to one vote.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More FDD, a Cooperative must be organized for specific, approved purposes. Each Cooperative's form, manner, and start date must receive advance written approval from Burneys Sweets More. The Cooperative is specifically organized to produce and conduct general advertising programs and activities within its geographic area. It also develops standardized promotional materials for its members' use.
Burneys Sweets More retains control over the Cooperative's advertising and promotional efforts. The Cooperative cannot use any advertising programs or materials, nor conduct any advertising or promotional activities, without Burneys Sweets More's prior written approval. All programs, materials, and planned activities must be submitted for approval following a procedure detailed in Section 8(f) of the franchise agreement.
Members contribute to the Cooperative in amounts determined by its governing body, with all members, including franchisees, Burneys Sweets More itself, and its affiliates, contributing on the same basis. However, no member can be required to contribute more than 4% of their monthly Gross Sales. Franchisees must make their contributions on the date and in the manner designated by the Cooperative and submit any statements and reports requested by the Cooperative. The Cooperative must also provide statements and reports to Burneys Sweets More as requested. The Cooperative is responsible for its own voting procedures, but each Burneys Sweets More franchised business that is a member gets one vote.