Can the Burneys Sweets More Brand Fund be used for research related to the brand?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
(i) Use. Franchisor has 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 inhouse personnel to assist in developing the BURNEY'S SWEETS & MORE brand name; developing, evaluating, or using technologies that 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, radio, billboard, TV, print, or internet advertising, and events and promotions designed to garner media attention and promote the brand name; brand partnerships; expenses associated with conducting market research; development of technology and enhancements for the brand; travel expenses in connection with promotions and marketing meetings, training, development of trademarks and trademarked materials; production of marketing, public relations, or digital or social media content, including, but not limited to, advertisements, coupons, and other promotional materials; expenses incurred in developing and maintaining non-franchise sales portion of an Online Presence; developing and maintaining any Online Presence; and expenses incurred in using search engine optimization, pay-per-click, or other digital marketing software, services, or companies to help promote the brand, and for any other use Franchisor determines.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More FDD, the Brand Fund can be used for research. Burneys Sweets More has the sole discretion to determine how the Brand Fund contributions are spent to promote the brand, shops, and system, including research. This means that a portion of the funds, which franchisees contribute between 0.5% and 1.5% of their monthly Gross Sales, can be allocated to various research initiatives at the discretion of Burneys Sweets More. Currently, the contribution amount is 0.5% of monthly Gross Sales.
This discretion allows Burneys Sweets More to invest in research areas such as market analysis, consumer behavior, or product development, all aimed at enhancing the brand's market position and overall growth. For a franchisee, this implies that their contributions could indirectly support initiatives designed to improve the brand's offerings, marketing strategies, and operational efficiencies through informed research.
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 the Brand Fund expenditures. This lack of transparency means franchisees may not have direct insight into how their contributions are being used for research or other purposes. While the Brand Fund can be used for research, franchisees have limited control or visibility over these expenditures.