What document identifies the territory granted to a Burneys Sweets More franchisee?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Territory. Subject to the provisions of this Section 5, provided Franchisee is in compliance with its obligations under this Agreement, Franchisor agrees that during the Initial Term it will not establish and operate, nor license any party other than Franchisee to establish and operate, a BURNEY'S SWEETS & MORE Shop at a physical location within the territory set forth in Attachment 1 hereto (the "Territory"), except at Non-Traditional Locations, as defined below. Until such time as the Location is identified and agreed upon in the Franchise Rider or in the Site Selection Acceptance Letter (as defined in the Franchise Rider), no Territory will be granted to Franchisee and Franchisor shall have the right to locate other franchises anywhere Franchisor determines without interfering with any territorial rights of Franchisee. Franchisee shall not solicit business from customers outside of its Territory without receiving Franchisor's prior, written permission. Notwithstanding the foregoing, Franchisor does not warrant or represent that no other BURNEY'S SWEETS & MORE shop will solicit or make any sales within the Territory, and Franchisee hereby expressly acknowledges and agrees that such solicitations or sales may occur within the Territory. Franchisor shall have no duty to protect Franchisee from any such sales, solicitations, or attempted sales. Franchisee recognizes and acknowledges that (i) it will compete with other BURNEY'S SWEETS & MORE shops which are now, or which may in the future be, located near or adjacent to Franchisee's Territory and (ii) that such shops may be owned by Franchisor, its affiliates, and/or third parties. Franchisee further acknowledges that only Franchisor shall be permitted to solicit business from customers by means of computerized or other electronic remote-entry ordering systems (such as, for example, the internet, phone, or mobile applications) capable of accepting orders placed from within or outside the Territory. Notwithstanding anything in this Agreement to the contrary, Franchisee's Territory excludes enclosed malls, commercial kitchens, grocery stores, convenience stores, gas stations, hospitals, military installations, schools, airports, parks (including theme parks), sports arenas, traveling carts or food trucks, and similar venues ("Non-Traditional Locations").
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the territory granted to a franchisee is defined in Attachment 1 to the Franchise Agreement. Specifically, Section 5(a) of Item 22 states that the territory is set forth in Attachment 1. This attachment is referenced as defining the franchisee's exclusive area, within which Burneys Sweets More agrees not to establish or license other shops during the initial term of the agreement, with some exceptions.
However, the grant of a territory is conditional. According to the FDD, no territory is granted until the location is identified and agreed upon in the Franchise Rider or the Site Selection Acceptance Letter. Until this occurs, Burneys Sweets More retains the right to locate other franchises without regard to any territorial rights. This means that a franchisee's territory is not fixed until a specific location is approved and documented.
Even after a territory is defined, Burneys Sweets More does not guarantee that other shops will not solicit or make sales within the franchisee's territory. The franchisee acknowledges that competition from other Burneys Sweets More shops may occur. Furthermore, Burneys Sweets More reserves the right to solicit business from customers through electronic remote-entry ordering systems, regardless of the territory. The territory also excludes non-traditional locations such as enclosed malls, commercial kitchens, grocery stores, and airports.