Must a Burneys Sweets More franchisee comply with prices specified by the Franchisor?
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)
Based on the 2025 Burneys Sweets More Franchise Disclosure Document, franchisees are required to pay the franchisor's current rates for required products and services if the franchisor or its affiliates are the designated supplier. This means Burneys Sweets More franchisees do not have a choice in pricing for goods they are required to purchase from Burneys Sweets More or its designated suppliers.
Additionally, Burneys Sweets More franchisees must pay their pro rata share of costs and fees for goods and services that benefit the entire Burneys Sweets More network, if the franchisor bills its franchisees for these goods and services. This implies that while franchisees may not directly set prices for these shared expenses, they are obligated to contribute their portion as determined by Burneys Sweets More.
While the FDD excerpt does not explicitly state that Burneys Sweets More dictates the retail prices franchisees charge customers, it does highlight the brand's control over supply costs and shared fees. A prospective franchisee should inquire about the specific products and services they are required to purchase from the franchisor, how the pro rata share of network costs is calculated, and whether there are any guidelines or recommendations for retail pricing to ensure profitability.