Can Burneys Sweets More designate exclusive suppliers for supplies?
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, 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 indicates that Burneys Sweets More can designate itself or its affiliates as exclusive suppliers.
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 for these goods and services. This suggests that Burneys Sweets More can negotiate deals with suppliers for the benefit of the entire franchise system and pass those costs on to franchisees.
Item 22 of the FDD discusses contracts and outlines various obligations and rights of both the franchisor and franchisee. It is important for a prospective franchisee to carefully review this section to understand the full scope of these contractual obligations, including supplier relationships and payment terms.