Can the Brand Fund for Burneys Sweets More invest any surplus funds?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor, in Franchisor's sole discretion, may spend in any fiscal year an amount greater or less than the aggregate contributions to the Brand Fund in that year, and the Brand Fund may borrow from Franchisor or other lenders to cover deficits of the Brand Fund or cause the Brand Fund to invest any surplus.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More Franchise Disclosure Document, the Brand Fund may invest any surplus funds. The franchisor has the discretion to spend more or less than the aggregate contributions in any fiscal year. To cover deficits, the Brand Fund can borrow from Burneys Sweets More or other lenders.
This means that Burneys Sweets More retains significant control over the Brand Fund, including how surplus funds are managed. While the Brand Fund is intended for the benefit of the Burneys Sweets More brand and franchisees, the franchisor's decisions regarding investments are not subject to franchisee approval or oversight.
It is important to note that Burneys Sweets More is not obligated to maintain Brand Fund contributions or income in a separate account from other franchisor funds. Additionally, the franchisor, its affiliates, officers, directors, agents, or employees are not liable to the franchisee regarding the Brand Fund's maintenance, direction, or administration, except in cases of willful misconduct. The Brand Fund is not considered a trust fund, and Burneys Sweets More has no fiduciary duty to franchisees concerning the collection or use of Brand Fund monies.