Can Burneys Sweets More designate exclusive suppliers for computer systems?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iii) Supplier Fees.
If Franchisor or any of its affiliates is the designated supplier for any required product or service for the Shop, Franchisee shall pay Franchisor's or its affiliates' then-current rates for such products and services.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Burneys Sweets More Franchise Disclosure Document, if Burneys Sweets More or its affiliates are the designated supplier for any required product or service for the shop, the franchisee must pay the then-current rates for such products and services. This implies that Burneys Sweets More has the right to designate suppliers for required products or services. However, the document does not specifically state whether Burneys Sweets More can designate exclusive suppliers for computer systems.
This policy has implications for prospective franchisees, as they may be required to purchase certain products or services from Burneys Sweets More or its affiliates at the rates established by the franchisor. This could affect the franchisee's operating costs and potentially reduce their profit margin if the franchisor's rates are higher than what could be obtained from other suppliers.
It is important for a prospective franchisee to clarify with Burneys Sweets More whether computer systems are included in the required products and services that must be purchased from designated suppliers. Understanding the scope of required purchases and the potential costs associated with them is crucial for making an informed investment decision.