Can Burneys Sweets More exercise rights not explicitly granted to the franchisee?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Reservation of Rights. Franchisor grant franchises and the rights to develop and operate a BURNEY'S SWEETS & MORE Shop only pursuant to the express terms of written agreements and not orally. All rights that are not granted to Franchisee in this Agreement are specifically reserved to Franchisor, and Franchisor will not be restricted in any manner from exercising them nor will Franchisor be required to compensate Franchisee should Franchisor exercise them. This includes the right, directly or through others and regardless of either (a) proximity to Franchisee's Shop or Territory or (b) any actual or threatened impact on sales of Franchisee's Shop to:
- (i) use the Marks and System in connection with establishing and operating BURNEY'S SWEETS & MORE shops at any location outside the Territory;
- (ii) use the Marks or other marks in connection with selling or distributing any goods (including branded merchandise) or services anywhere in the world (including within the Territory), whether or not Franchisee also offers them, through channels of distribution other than a BURNEY'S SWEETS & MORE Shop (including, for example, other permanent or temporary retail locations, kiosks, carts, food trucks, catalogs, mail order, or the internet or other electronic means or through delivery by Franchisor, Franchisor's affiliates, Franchisor's franchisees, and/or third party delivery services);
- (iii) acquire, establish or operate, without using the Marks, any business of any kind at any location anywhere in the world (including within the Territory);
- (iv) use the Marks in connection with soliciting or directing advertising or promotional materials to customers anywhere in the world (including within the Territory); and
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 retains all rights not explicitly granted to the franchisee in the franchise agreement. This means that Burneys Sweets More is not restricted from exercising these rights and is not required to compensate the franchisee should they choose to do so.
This reservation of rights allows Burneys Sweets More to operate and expand its brand through various channels without being limited by the individual franchise agreements. Specifically, Burneys Sweets More can use its trademarks and systems to establish shops outside the franchisee's territory, sell goods and services through other distribution channels (including online), operate any kind of business without using the Burneys Sweets More marks, and direct advertising to customers anywhere, even within a franchisee's territory.
For a prospective franchisee, this means that Burneys Sweets More could potentially open other Burneys Sweets More locations nearby, sell products online that compete with the franchisee's sales, or engage in other business activities that might impact the franchisee's revenue. The franchisee's rights are limited to those specifically outlined in the franchise agreement, and Burneys Sweets More retains broad authority over the brand and its expansion.