Can the Brand Fund for Burneys Sweets More be considered an asset of the Franchisor?

According to the 2025 Burneys Sweets More Franchise Disclosure Document, the Brand Fund is explicitly stated as not being an asset of the franchisor or its designee. This means that Burneys Sweets More franchisees' contributions to the Brand Fund are not considered company assets. This separation is a common practice in franchising to ensure that the fund is used for the benefit of the entire franchise system rather than the franchisor's direct financial gain.

Burneys Sweets More retains sole discretion over how the Brand Fund is spent, with the aim of promoting and growing the Burneys Sweets More brand. These expenditures can include research, marketing, public relations, advertising, technology development, and new product development. The funds can be used for various advertising channels, including digital marketing, traditional media, and events. While the franchisor manages the fund and decides on its allocation, the explicit statement that it is not an asset provides a degree of assurance to franchisees that the funds are intended for system-wide benefits.

However, the FDD also states that the Brand Fund is not audited, and Burneys Sweets More has no obligation to provide franchisees with an accounting of Brand Fund expenditures. This lack of transparency might be a concern for some franchisees, as they have no guaranteed way to see exactly how their contributions are being used. While the franchisor is expected to act in good faith, the absence of an audit or detailed reporting could lead to uncertainty about the fund's management.

Burneys Sweets More can create a separate entity to receive Brand Fund contributions and may spend more or less than the aggregate contributions in any fiscal year. The Brand Fund may also borrow or invest surplus funds. Franchisees should be aware that contributions are not necessarily spent proportionally in their geographic area, and they may not directly benefit in proportion to their contributions. These factors highlight the importance of franchisees understanding the terms and conditions related to the Brand Fund and the franchisor's responsibilities in managing it.