Is a Burneys Sweets More franchisee allowed to bring an action on a class-wide basis?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| JURY TRIAL AND CLASS ACTION WAIVER. FRANCHISOR AND | |
|---|---|
| FRANCHISEE (AND FRANCHISEE’S OWNERS, AFFILIATES, AND GUARANTORS, | |
| IF APPLICABLE) IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION | |
| BROUGHT BY FRANCHISOR (AND ITS AFFILIATES, IF APPLICABLE) AND | |
| FRANCHISEE (AND FRANCHISEE’S OWNERS, AFFILIATES, AND GUARANTORS, | |
| IF APPLICABLE). NEITHER FRANCHISEE (AND FRANCHISEE’S OWNERS, | |
| AFFILIATES, AND GUARANTORS, IF APPLICABLE) NOR FRANCHISOR SHALL | |
| SEEK TO BRING AN ACTION AGAINST ANY OF THE OTHER PARTIES EITHER AS | |
| A REPRESENTATIVE OF, OR ON BEHALF OF, ANY OTHER PERSON, CLASS, OR | |
| ENTITY. NO ACTION SHALL ADD AS A PARTY, BY CONSOLIDATION, JOINDER, | |
| OR IN ANY OTHER MANNER, ANY PERSON OR PARTY OTHER THAN | |
| FRANCHISEE (AND FRANCHISEE’S OWNERS, AFFILIATES, AND GUARANTORS, | |
| IF APPLICABLE) AND FRANCHISOR (AND ITS AFFILIATES, IF APPLICABLE) AND | |
| ANY PERSON IN PRIVITY WITH, OR CLAIMING THROUGH, IN THE RIGHT OF, | |
| OR ON BEHALF OF, THEM, UNLESS BOTH FRANCHISEE AND FRANCHISOR | |
| CONSENT IN WRITING. FRANCHISOR HAS THE ABSOLUTE RIGHT TO REFUSE | |
| SUCH CONSENT. FRANCHISEE (AND ITS OWNERS, GUARANTORS, AND | |
| AFFILIATES, AS APPLICABLE) AGREES AND ACKNOWLEDGES THAT ANY | |
| ACTION WILL BE CONSIDERED UNIQUE ON ITS FACTS AND SHALL NOT BE | |
| BROUGHT AS A CLASS OR GROUP ACTION. FRANCHISEE (AND ITS OWNERS, | |
| GUARANTORS, AND AFFILIATES, AS APPLICABLE) MAY NOT BRING ANY | |
| ACTION ON A CLASS-WIDE BASIS (OR JOIN ANY THIRD-PARTY CLAIM). |
Source: Item 23 — RECEIPT (FDD pages 50–199)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, franchisees are prohibited from bringing actions on a class-wide basis against the franchisor. This restriction extends not only to the franchisee but also to their owners, affiliates, and guarantors. This means a franchisee cannot participate in a class action lawsuit against Burneys Sweets More, nor can they join any third-party claim against the company.
This waiver is a significant legal constraint for prospective Burneys Sweets More franchisees. Class action lawsuits can be an effective way for franchisees to collectively address systemic issues with a franchisor, sharing legal costs and potentially achieving broader remedies. By agreeing to this waiver, franchisees give up this avenue for resolving disputes. This could leave individual franchisees with limited recourse if they experience problems common to the franchise system.
Such waivers are relatively common in franchise agreements. Franchise agreements often include clauses that restrict franchisees' ability to participate in class action lawsuits, favoring individual arbitration or other dispute resolution methods. Prospective franchisees should carefully consider the implications of this waiver and seek legal counsel to understand their rights and options for dispute resolution with Burneys Sweets More.