Is Burneys Sweets More currently an approved supplier for franchisees?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Authorized Distributors. You must purchase and use only goods, services, supplies, fixtures, equipment, inventory, and computer systems that meet our standards and specifications. We have developed and may develop additional standards and specifications for these items that we make available to you through the Brand Standards Manual, pre-opening materials, and other communications. You must comply with the changes after receiving notice from us. Your supplier of all the goods, services, supplies, fixtures, equipment, inventory, and computer systems must be a supplier that we approve or designate. We or our affiliate may be an approved or designated supplier. We reserve the right to revoke approval for any item or supplier for any reason, and you must cease to use the item or supplier upon 30 days' notice from us. Even with approved suppliers,
only certain inventory items are approved. We have the right to change our business relationship with our approved suppliers as well as the right to add and/or remove approved suppliers from the approved supplier list.
You must purchase or lease the required point-of-sale system as designated by us and from an approved supplier. You will be obligated to purchase all POS equipment we may require during the term of your Franchise Agreement. The POS system you may be required to purchase must conform to our standards and specifications. You are required to use the credit card processing service we approve.
We have approved exclusive suppliers from whom you will be required to purchase certain inventory, food, and products, including, but not limited to, all baking supplies and products. We may restrict you from buying inventory we have not approved, even from suppliers we approve.
If you do not own your business premises, we must approve your lease. It is your responsibility to select your own location. We have the right to require you and your landlord to provide in the lease that we shall have the right at our option and without compensation to you to take assignment of the lease should you materially default under the lease or should your franchise agreement terminate or not be renewed for any reason. You are not allowed to relocate the business premises without our prior written approval.
Because of the volume of business franchisees may bring in the future to our suggested suppliers, you may enjoy lower prices than you could receive from other suppliers, or on the other hand, you may encounter higher prices than you would otherwise encounter if you were not required to purchase from the authorized supplier. We may, but are under no obligation to, negotiate with these suppliers to your benefit. We will have no obligation to share any revenue, rebates, commissions, discounts, or other benefits received with you.
We do not provide you with any material benefits based upon your use of approved suppliers.
Insurance. You are obligated to obtain and maintain, at your own expense, such insurance that we require from time to time from a nationally-recognized insurance company and at all times during the term of the Franchise Agreement maintain in force and pay the premiums for all types of public liability insurance with complete operations coverage, with limits of liability for bodily injury, personal injury and advertising injury of not less than $1,000,000 with limits of liability for property damage of not less than $1,000,000 in each occurrence, $1,000,000 of public and product liability coverage, and non-owned vehicle coverage of at least $500,000. You are also required to purchase business interruption insurance and must use the proceeds received from your business interruption insurance to pay Royalties during any period your business is interrupted by hurricanes, fires, or other disasters. From time to time in our sole discretion, we may increase or modify such limits of liability or require additional types of coverage, including coverage for cyber liability. The cost of this coverage will vary depending on the insurance carrier's charges, terms of payments and your history. All insurance policies must name us as an additional insured party. The Franchise Agreement also outlines the types, amounts, terms and conditions of insurance coverage required for your Shop, including, but not limited to, standards for underwriters of policies providing required insurance coverage; our protection and rights under such policies as an additional named insured; required or impermissible insurance contract provisions; assignment of
policy rights to us; periodic verification of insurance coverage that must be furnished to us; our right to obtain insurance coverage at your expense if you fail to obtain required coverage; our right to defend a claim; and similar matters relating to insured and uninsured claims.
Method of Approving Suppliers. To use a supplier, product, service, or vendor that we have not already approved, you must first submit to us certain information including product specifications, costs, product components, performance history, product samples, supplier information or photographs, and any other relevant information. We will evaluate the proposed good, service, or supplier based upon certain criteria and determine if you are approved to use the alternate good, service, or supplier. We do not make the criteria available to you. If the good, service, or supplier meets our criteria, you may use it. We do inform you that we generally evaluate technical and performance properties of the good, service, or supplier, including design, appearance, product reliability, durability, the manufacturer's warranties, quality control methods, taste, ingredients, financial ability of the product's producers and distributors, supplier history and reputation, and supplier capacity. Our review is generally completed in 90 days. If we do not approve of the supplier, good, or service within 120 days, then that good, service, or supplier is deemed not approved and you must not use that supplier, good, or service. We will advise you in writing of our decision. We impose these restrictions to safeguard the integrity of both the System and our Marks. We reserve the right to revoke approval for any good, service, or supplier for any reason, and you must cease to use the good, service, or supplier upon 30 days' notice from us. If you request that we evaluate a good, service, or supplier, you will pay all fees and costs incurred by us to obtain the necessary information and to conduct the evaluation.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–23)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, franchisees must purchase goods, services, supplies, fixtures, equipment, inventory, and computer systems from approved or designated suppliers that meet Burneys Sweets More's standards and specifications. Burneys Sweets More retains the right to modify these standards and specifications and to revoke approval of any item or supplier with 30 days' notice. Franchisees are required to purchase or lease a designated point-of-sale (POS) system from an approved supplier and use an approved credit card processing service.
Burneys Sweets More has approved exclusive suppliers for certain inventory, food, and products, including baking supplies and products. The FDD specifies that Burneys Sweets More may restrict franchisees from buying non-approved inventory, even from approved suppliers. If a franchisee wishes to use a non-approved supplier, product, service, or vendor, they must submit detailed information for evaluation. Burneys Sweets More will assess the proposal based on criteria that are not disclosed to the franchisee, considering factors such as technical and performance properties, design, appearance, reliability, warranties, quality control, taste, ingredients, financial ability, supplier history, and capacity. The review process typically takes 90 days, with a final decision within 120 days.
Currently, Burneys Sweets More, its affiliates, and owners are not approved suppliers, nor do they have any ownership interest in an approved supplier, or receive any benefit from required purchases. However, Burneys Sweets More reserves the right to become an approved supplier in the future, approve its affiliates as suppliers, or receive benefits from required purchases. If a franchisee's request to evaluate a good, service, or supplier is approved, the franchisee will pay an administrative fee equal to 15% of the value of the items purchased. During the last fiscal year ended December 31, 2024, Burneys Sweets More received $144,633, or approximately 40.26% of its total revenue of $359,246, from franchisee purchases from approved suppliers. For each order of food our franchisees purchase from our approved food supplier, Burneys Sweets More receives a flat fee per box of croissants purchased, plus a percentage of each franchisee's total order less the value of the purchased croissants.
These restrictions are in place to maintain the integrity of the Burneys Sweets More system and brand. While franchisees may benefit from the volume discounts negotiated with approved suppliers, they also risk paying higher prices than they might find elsewhere. Franchisees are obligated to purchase between 90% and 95% of their overall products from authorized suppliers, which can significantly impact their cost structure and profitability. Prospective franchisees should carefully consider these restrictions and the potential financial implications before investing in a Burneys Sweets More franchise.