Who bears the cost of advertising materials developed by Burneys Sweets More franchisees?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
You may develop advertising materials for your own use at your own cost. We encourage the sharing by franchisees of advertising ideas and materials. We require you to submit advertising and promotional materials to us in advance and to obtain our approval before using them. You are required to follow our instructions in connection with any advertising or promotional materials we provide for your use. (Franchise Agreement Section 8(g).) Failure to follow our instructions regarding pre-approval of advertising materials will result in fines. These fines will be as follows: 1 st infraction: $0, 2nd infraction: $100, and third or subsequent infraction: $500. Imposition of these fines will in no way waive our right to consider your use of unapproved advertising as a default-triggering event, such as that described at Franchise Agreement Section 17(c)(v).
Brand Fund. We have established the Brand Fund to support the development of new recipes and franchisee revenue sources, the evaluation and adoption of new technology, and the
creation of marketing content and public relations materials, as we, in our sole discretion, deem appropriate for the benefit of the brand. (Franchise Agreement Sections 8 (a)(ii) and 8(b))
The contribution is currently 0.5% of monthly Gross Sales. We reserve the right to raise the contribution to the Brand Fund, but not to exceed 1.5% of your Gross Sales. We may at our discretion defer Brand Fund contributions for you or another franchisee for an additional period of time we deem appropriate at the outset of your or their Shop. Other franchisees' Brand Fund contributions may be calculated at a different rate or on a different basis and, under limited circumstances, certain franchisees may not be required to pay Brand Fund fees. We have the sole discretion to settle or forgive any accrued and unpaid Brand Fund contributions owed by a franchisee.
We have the sole discretion to determine where the Brand Fund contributions will be spent to promote, enhance, or further the growth of the BURNEY'S SWEETS & MORE brand, shops, and System, including, but not limited to: research; promotional marketing, public relations, and advertising expenses to promote the brand; hiring marketing, public relations and advertising agencies, technology companies, or in-house personnel to assist in developing the BURNEY'S SWEETS & MORE brand name; developing, evaluating, or using technologies that we believe may benefit the brand, the customers, the franchisees, or the brand's reputation; developing new products and franchisee revenue sources; expenses associated with listings on websites, contest registrations, digital marketing content, influencer marketing, and events and promotions designed to garner media attention and promote the brand name; brand partnerships; expenses associated with conducting market research;
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 25–33)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, franchisees are responsible for the costs associated with advertising materials they develop for their own use. Burneys Sweets More encourages franchisees to share advertising ideas and materials but requires that all advertising and promotional content be submitted for approval before use. Franchisees must also adhere to Burneys Sweets More's instructions regarding any advertising or promotional materials provided for their use. Failure to obtain pre-approval for advertising materials can result in fines. The first infraction results in a $0 fine, the second in a $100 fine, and the third or subsequent infraction in a $500 fine.
Burneys Sweets More has established a Brand Fund, which is supported by franchisee contributions, to develop new recipes, identify new revenue streams, evaluate and adopt new technologies, and create marketing and public relations content. The contribution to the Brand Fund is currently 0.5% of monthly Gross Sales, and Burneys Sweets More reserves the right to increase this contribution up to 1.5% of Gross Sales. Burneys Sweets More may also defer Brand Fund contributions for certain franchisees or calculate contributions at different rates under specific circumstances.
While Burneys Sweets More may provide advertising content for franchisees to use locally or regionally, franchisees are responsible for implementing any promotional or public relations programs and for placing any advertising content created by Burneys Sweets More at their own expense. Franchisees receive one sample of any advertising content created by Burneys Sweets More at no charge but must pay for the duplication and distribution of the content. Burneys Sweets More does not have any obligation to supply franchisees with advertising material produced at its sole expense.