factual

For a Burneys Sweets More franchise, what is the permitted use of the leased premises?

Burneys_Sweets_More Franchise · 2025 FDD

Answer from 2025 FDD Document

The Premises are leased to Tenant for the operation of a franchised limited-seating, fast-casual Shop emphasizing high-quality, glazed and stuffed croissants, donuts, cakes, pies, cookies, other dessert items, coffee and other beverages.

The Tenant may also use the Premises for promotions, celebrations, meetings, and other group functions where Tenant's services and products will be offered or sold.

Landlord covenants that from and after the date hereof, Landlord shall not permit any other tenant to operate a Shop in the same shopping center as the Premises that receives twenty-five percent (25%) or more of its gross sales from the sale of bakery items, including but not limited to, cakes, croissants, and/or pies, on a dine-in or carry-out basis.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to the 2025 Burneys Sweets More Franchise Disclosure Document, the leased premises must be used for the operation of a franchised limited-seating, fast-casual shop. This shop will emphasize high-quality, glazed and stuffed croissants, donuts, cakes, pies, cookies, other dessert items, coffee, and other beverages. This means a franchisee's primary business activity at the location must align with Burneys Sweets More's core offerings.

In addition to the primary retail operations, Burneys Sweets More franchisees can also use the premises for promotions, celebrations, meetings, and other group functions where the franchisee's services and products are offered or sold. This allows franchisees to host events and gatherings to market their business and engage with the community. However, the lease agreement includes a clause protecting Burneys Sweets More's market share, as the landlord agrees not to permit any other tenant in the same shopping center to operate a shop that derives 25% or more of its gross sales from similar bakery items like cakes, croissants, and pies, sold on a dine-in or carry-out basis.

This permitted use clause ensures that the Burneys Sweets More location maintains its brand identity and focus. The clause restricting competing bakeries in the same shopping center aims to provide a competitive advantage to the franchisee. Franchisees should carefully review the lease agreement and understand these permitted uses and restrictions to ensure they operate within the bounds of the agreement and maximize their business potential.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.