Can Burneys Sweets More designate exclusive suppliers for service?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
es. 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 can be designated as the exclusive 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. This means that franchisees may be required to purchase certain products or services from Burneys Sweets More or its approved suppliers, which could impact their costs and potentially reduce their profit margins if those rates are higher than what could be found elsewhere.
Additionally, Burneys Sweets More reserves the right to have suppliers bill it or an affiliate for goods and services that benefit the entire Burneys Sweets More franchisee network. In this case, the franchisee agrees to pay their pro rata share of the costs and fees for these goods and services. This implies that franchisees will contribute to expenses that benefit the entire franchise system, which could include marketing, technology, or other shared resources.
These stipulations are common in franchising to maintain brand consistency and quality control. However, prospective franchisees should carefully evaluate the costs associated with these required purchases and shared fees to determine their potential impact on the overall profitability of their Burneys Sweets More franchise.