Can Burneys Sweets More defer Brand Fund contributions for a franchisee?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Brand Fund. We have established the Brand Fund to support the development of new recipes and franchisee revenue sources, the evaluation and adoption of new technology, and the
creation of marketing content and public relations materials, as we, in our sole discretion, deem appropriate for the benefit of the brand. (Franchise Agreement Sections 8 (a)(ii) and 8(b))
The contribution is currently 0.5% of monthly Gross Sales. We reserve the right to raise the contribution to the Brand Fund, but not to exceed 1.5% of your Gross Sales. We may at our discretion defer Brand Fund contributions for you or another franchisee for an additional period of time we deem appropriate at the outset of your or their Shop. Other franchisees' Brand Fund contributions may be calculated at a different rate or on a different basis and, under limited circumstances, certain franchisees may not be required to pay Brand Fund fees. We have the sole discretion to settle or forgive any accrued and unpaid Brand Fund contributions owed by a franchisee.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 25–33)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, Burneys Sweets More may defer Brand Fund contributions for franchisees. The document states that Burneys Sweets More has the discretion to defer these contributions for a period they deem appropriate, especially at the outset of a new shop. This deferral is not guaranteed and is subject to Burneys Sweets More's decision.
This discretion extends to other franchisees as well, where their Brand Fund contributions may be calculated differently or, in some cases, not required at all. Burneys Sweets More also retains the sole authority to settle or forgive any outstanding Brand Fund contributions owed by a franchisee.
For a prospective Burneys Sweets More franchisee, this means there's a possibility of reduced financial burden during the initial stages of operation. However, it's important to note that this is not a guaranteed benefit and depends on Burneys Sweets More's assessment. A potential franchisee should inquire about the specific conditions and criteria under which such deferrals are granted to fully understand the potential financial relief available during the startup phase.