How are contributions to the Cooperative determined for Burneys Sweets More franchisees?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
(iv) Members of the Cooperative shall make contributions to the Cooperative in such amounts as are determined by the governing body of the Cooperative. Each member of the Cooperative shall make contributions to the Cooperative on the same basis as the other members, whether owned by Franchisee, another franchisee, Franchisor, or Franchisor's affiliates. In no event shall members be required to contribute more than Four Percent (4%) of monthly Gross Sales.
(v) Franchisee shall make its contributions to the Cooperative on the date and in the manner designated by the Cooperative.
Franchisee shall also submit such statements and reports as may be designated from time to time by the Cooperative.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, franchisee contributions to the Cooperative are determined by the Cooperative's governing body. All members of the Cooperative, including franchisees, the franchisor, and its affiliates, contribute on the same basis. However, the FDD stipulates that in no event can these contributions exceed four percent (4%) of monthly Gross Sales. Franchisees are required to make these contributions on the date and in the manner designated by the Cooperative and must also submit any statements and reports requested by the Cooperative.
Burneys Sweets More requires that the Cooperative be used for advertising programs and activities within the applicable geographic area and for developing standardized promotional materials for its members. All advertising programs and materials must receive prior written approval from Burneys Sweets More. The Cooperative is responsible for its own voting procedures, but each Burneys Sweets More franchised business that is a member is entitled to one vote.
Burneys Sweets More also states that the Cooperative must prepare quarterly and annual financial statements, which must be made available to all members. The members of the Cooperative and their governing body are responsible for administering the Cooperative. However, Burneys Sweets More retains the discretion to grant any Burneys Sweets More franchised business an exemption from the requirement of membership in a Cooperative.