factual

Can a Burneys Sweets More franchisee join a third-party claim?

Burneys_Sweets_More Franchise · 2025 FDD

Answer from 2025 FDD Document

xhibit L – Receipt

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 the 2025 Burneys Sweets More Franchise Disclosure Document, franchisees are prohibited from joining any third-party claims. The FDD states that franchisees may not bring any action on a class-wide basis or join any third-party claim. This waiver extends not only to the franchisee but also to their owners, affiliates, and guarantors, if applicable.

This clause means that a Burneys Sweets More franchisee gives up the right to participate in a class action lawsuit against the franchisor or any other related party. This includes joining any existing lawsuit initiated by someone else. The franchisee's legal recourse is limited to individual actions, which can be more expensive and time-consuming than participating in a class action.

Such waivers are relatively common in franchise agreements. Franchisors often include them to avoid the potential financial impact and administrative burden of class action lawsuits. However, franchisees should carefully consider the implications of this waiver, as it restricts their ability to collectively address issues with other franchisees.

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.