What constitutes the 'Restrictive Territory' for a Burneys Sweets More franchise?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
(g) "Restrictive Territory" shall mean:
- i) At the Location of the Franchised Business; or
- ii) The Territory served by Franchisee as that Territory exists on the date of termination, expiration, non-renewal, or transfer of the Franchise Agreement, including the Location; or
iii) The territories in which Franchisor or its affiliates operate any BURNEY'S SWEETS & MORE businesses or locations as of the date of termination, expiration, non-renewal, or transfer of the Franchise Agreement, including those locations; or
iv) The territories of any of Franchisor's BURNEY'S SWEETS & MORE franchisees as those territories exist as of the date of termination, expiration, non-renewal, or transfer of the Franchise Agreement, including those locations; or
v) An area which is within a 10-mile radius of:
(1) The Location of the Franchised Business as of the date of termination, expiration, non-renewal, or transfer of the Franchise Agreement, including the Location, and
(2) The location of any other BURNEY'S SWEETS & MORE shops owned by Franchisor or its affiliates or franchisees as of the date of termination, expiration, non-renewal, or transfer of the Franchise Agreement, including the Location.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the "Restrictive Territory" defines the geographic area where a franchisee faces limitations on competitive activities, particularly after the termination, expiration, non-renewal, or transfer of the Franchise Agreement. This territory is defined in several ways.
First, the Restrictive Territory includes the physical location of the franchised Burneys Sweets More business. Second, it encompasses the territory that the franchisee served, as it existed on the date of termination, expiration, non-renewal, or transfer of the agreement. Third, it extends to the territories where Burneys Sweets More or its affiliates operate businesses or locations as of the date of termination, expiration, non-renewal, or transfer. Fourth, it includes the territories of any of Burneys Sweets More's other franchisees as those territories exist as of the date of termination, expiration, non-renewal, or transfer of the agreement.
Finally, the Restrictive Territory also covers an area within a 10-mile radius of both the franchised business's location and the location of any other Burneys Sweets More shops owned by the franchisor, its affiliates, or other franchisees, as of the date of termination, expiration, non-renewal, or transfer of the Franchise Agreement. This broad definition means that a franchisee's ability to engage in a competitive business after leaving the Burneys Sweets More system is significantly restricted across a wide geographic area.