Can Burneys Sweets More convene meetings of franchisees?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provisions shall apply to each Cooperative:
(i) Each Cooperative shall be organized and governed in a form and manner, and shall commence operation on a date, approved in advance by Franchisor in writing.
(ii) Each Cooperative shall be organized for the purposes of producing and conducting general advertising programs and activities for use in and around the applicable geographic area and developing standardized promotional materials for use by the members.
(iii) No advertising programs or materials may be used by the Cooperative or furnished to its members, and no advertising or promotional activities may be conducted by the Cooperative, without the prior written approval of Franchisor. All such programs, materials and planned activities shall be submitted to Franchisor for approval in accordance with the procedure set forth in Section 8(f).
(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.
The Cooperative shall submit to Franchisor such statements and reports as Franchisor may designate from time to time.
The Cooperative shall prepare written governing documents that shall be available to Franchisee and Franchisor for review.
These written governing documents are subject to Franchisor's approval.
The Cooperative is responsible for determining its own voting procedures; however, each BURNEY'S SWEETS & MORE franchised business that is a member of the Cooperative is entitled to one vote.
The Cooperative must prepare quarterly and annual financial statements and these statements must be made available to all members in the Cooperative.
The members of the Cooperative and their governing body are responsible for administering the Cooperative.
- (vi) Notwithstanding the foregoing to the contrary, Franchisor, in its sole discretion, may grant to any BURNEY'S SWEETS & MORE franchised business an exemption from the requirement of membership in a Cooperative.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Burneys Sweets More Franchise Disclosure Document, the document outlines the establishment and operation of advertising cooperatives, which can be viewed as a form of franchisee meeting. These cooperatives are designed for conducting general advertising programs and developing standardized promotional materials within a specific geographic area.
Franchisees may be required to contribute up to 4% of their monthly Gross Sales to the cooperative, ensuring that all members, including Burneys Sweets More itself or its affiliates, contribute on the same basis. However, Burneys Sweets More retains the discretion to exempt any franchise from the cooperative membership requirement. The cooperative is responsible for determining its own voting procedures, but each Burneys Sweets More franchised business that is a member is entitled to one vote.
These cooperatives must operate under written governing documents approved by Burneys Sweets More, ensuring that all advertising programs and materials receive prior written approval from the franchisor. The cooperatives must also prepare quarterly and annual financial statements available to all members. While the FDD does not explicitly state that Burneys Sweets More will convene meetings, the structure and oversight of these advertising cooperatives suggest a mechanism for franchisees to meet, collaborate, and receive direction, subject to the franchisor's control and approval.