What areas are included in the 'Restrictive Territory' for a Burneys Sweets More franchise?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
(g) "Restrictive Territory" shall mean:
- i) At the Location of the Franchised Business; or
- ii) The Territory served by Franchisee as that Territory exists on the date of termination, expiration, non-renewal, or transfer of the Franchise Agreement, including the Location; or
iii) The territories in which Franchisor or its affiliates operate any BURNEY'S SWEETS & MORE businesses or locations as of the date of termination, expiration, non-renewal, or transfer of the Franchise Agreement, including those locations; or
iv) The territories of any of Franchisor's BURNEY'S SWEETS & MORE franchisees as those territories exist as of the date of termination, expiration, non-renewal, or transfer of the Franchise Agreement, including those locations; or
v) An area which is within a 10-mile radius of:
(1) The Location of the Franchised Business as of the date of termination, expiration, non-renewal, or transfer of the Franchise Agreement, including the Location, and
(2) The location of any other BURNEY'S SWEETS & MORE shops owned by Franchisor or its affiliates or franchisees as of the date of termination, expiration, non-renewal, or transfer of the Franchise Agreement, including the Location.
(h) "Term" shall mean the period between the Effective Date and the first date of the Restrictive Period.
(i) "Territory" shall have the meaning defined in the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More Franchise Disclosure Document, the "Restrictive Territory" defines the geographic scope where certain post-termination restrictions apply to the franchisee. This means that after the franchise agreement ends (due to termination, expiration, non-renewal, or transfer), the franchisee faces limitations on business activities within these specified areas.
The Restrictive Territory includes several key areas: the physical location of the franchised Burneys Sweets More business, the territory the franchisee served during the agreement, territories where Burneys Sweets More or its affiliates operate businesses, territories of other Burneys Sweets More franchisees, and an area within a 10-mile radius of both the franchised business's location and any other Burneys Sweets More shops owned by the franchisor, its affiliates, or other franchisees.
These restrictions typically prevent the franchisee from engaging in competitive activities, such as opening a similar business or soliciting customers and vendors of the Burneys Sweets More franchise, within the Restrictive Territory during a defined period, known as the Restrictive Period. The Restrictive Period for Burneys Sweets More is two years after the end of the franchise agreement. The definition of "Territory" itself is found in the Franchise Agreement, as referenced in the FDD.
Prospective franchisees should carefully consider the implications of these restrictions, as they can significantly impact their ability to operate a similar business in the vicinity after the franchise agreement concludes. Understanding the precise boundaries of the Restrictive Territory, as defined in the Franchise Agreement and attachments, is crucial for future business planning.