Can Burneys Sweets More designate exclusive suppliers for materials?
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.
- (iv) Shared Fees.
Franchisor reserves the right to have suppliers bill it or an affiliate for goods and services that benefit the network of BURNEY'S SWEETS & MORE franchisees.
Franchisee agrees to pay Franchisor Franchisee's pro rata share of the costs and fees of these goods and services.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, Burneys Sweets More or its affiliates may be the designated supplier for any required product or service for the shop. If Burneys Sweets More or its affiliates are the designated supplier, the franchisee must pay the then-current rates for such products and services.
Burneys Sweets More also reserves the right to have suppliers bill it or an affiliate for goods and services that benefit the network of Burneys Sweets More franchisees. In this case, the franchisee agrees to pay their pro rata share of the costs and fees of these goods and services.
This arrangement means that franchisees may be required to purchase certain products or services from suppliers designated by Burneys Sweets More, potentially impacting their costs and operational flexibility. Franchisees should evaluate whether the franchisor's negotiated rates are competitive and consider the potential impact on their bottom line.