What constitutes a 'Crisis' that a Burneys Sweets More franchisee must report?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
- (n) Crisis Situations.
Franchisee shall notify Franchisor immediately upon the occurrence of any situation that may have a significant negative impact on Franchisee, Franchisor, or the Franchised Business, or which could have a deleterious effect on the BURNEY'S SWEETS & MORE brand, Marks or System (a "Crisis").
Franchisee shall follow all of Franchisor's policies, procedures, and instructions in every such situation, including, without limitation, managing public relations and communications, as directed by Franchisor or as specified in the Brand Standards Manual, whether or not Franchisee has retained outside counsel or a public relations firm to assist with such matters.
A Crisis includes, but is not limited to, any event that occurs at or about the Shop or related to the Franchised Business that has or may cause harm or injury to customers or employees.
Examples include, but are not limited to, contagious diseases, food poisoning, food contamination, food spoilage, foodborne illness, cyber attacks, natural disasters, terrorist acts, shootings, or any other circumstance which may damage the System, Marks, or image or reputation of the Shop, the System or Franchisor.
Franchisee will cooperate fully with Franchisor with respect to Franchisor's response to the Crisis.
In the event of the occurrence of a Crisis, Franchisor may establish emergency procedures which may require Franchisee to temporarily close the Shop to the public, in which event Franchisor shall not be liable to Franchisee for any loss or costs, including consequential damages or lost profits occasioned thereby.
Franchisor will have the right to take control of the management of communications if Franchisor determines that the publicity surrounding the event is likely to have a material adverse effect on the reputation or goodwill of the Shop, Marks, System, or Franchisor.
Franchisee will obtain Franchisor's consent before any press releases, interviews or public statements are issued by Franchisee, or anyone on its behalf, about events that are likely to receive or are receiving significant negative public attention related to the Shop, Marks, System, or Franchisor.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More Franchise Disclosure Document, a 'Crisis' is defined as any situation that could significantly and negatively impact the franchisee, the franchisor, or the franchised business, or that could harm the Burneys Sweets More brand, trademarks, or system. Franchisees are obligated to immediately inform Burneys Sweets More of such events and adhere to all policies, procedures, and instructions provided by the franchisor, including those related to public relations and communications.
The definition of a 'Crisis' includes, but is not limited to, any event occurring at or related to the shop that causes or may cause harm or injury to customers or employees. Specific examples provided in the FDD include contagious diseases, food poisoning, food contamination, food spoilage, foodborne illnesses, cyber attacks, natural disasters, terrorist acts, and shootings. Additionally, any other circumstance that may damage the system, trademarks, or the image or reputation of the shop, the system, or Burneys Sweets More is also considered a 'Crisis'.
In the event of a 'Crisis', Burneys Sweets More has the right to establish emergency procedures, potentially requiring the franchisee to temporarily close the shop. The franchisor is not liable for any losses or costs incurred by the franchisee due to such closures, including consequential damages or lost profits. Furthermore, Burneys Sweets More reserves the right to take control of communications management if the publicity surrounding the event is likely to have a materially adverse effect on the reputation or goodwill of the shop, trademarks, system, or Burneys Sweets More itself. Franchisees must obtain the franchisor's consent before issuing any press releases, interviews, or public statements about events that are likely to receive significant negative public attention related to the shop, trademarks, system, or Burneys Sweets More.