When and how must a Burneys Sweets More franchisee make contributions to the Cooperative?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
(iv) Members of the Cooperative shall make contributions to the Cooperative in such amounts as are determined by the governing body of the Cooperative. Each member of the Cooperative shall make contributions to the Cooperative on the same basis as the other members, whether owned by Franchisee, another franchisee, Franchisor, or Franchisor's affiliates. In no event shall members be required to contribute more than Four Percent (4%) of monthly Gross Sales.
(v) Franchisee shall make its contributions to the Cooperative on the date and in the manner designated by the Cooperative.
Franchisee shall also submit such statements and reports as may be designated from time to time by the Cooperative.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Cooperative, with the specific amount determined by the Cooperative's governing body. These contributions must be made on the same basis as all other members, including other franchisees, Burneys Sweets More itself, or its affiliates. The maximum contribution required is capped at four percent (4%) of monthly Gross Sales.
The timing and method of these contributions are dictated by the Cooperative. Franchisees must adhere to the schedule and payment procedures established by the Cooperative, and they are also obligated to submit any statements and reports requested by the Cooperative. This ensures that the Cooperative has the necessary financial resources and information to effectively manage advertising and promotional activities for the benefit of all members.
It's important to note that Burneys Sweets More retains the discretion to grant exemptions from Cooperative membership to any franchisee. This exemption can be for any duration and may apply to one or more businesses owned by the franchisee. However, if a franchisee is a member of the Cooperative, they are entitled to one vote, and the Cooperative is responsible for providing quarterly and annual financial statements to its members.