When does a Burneys Sweets More franchisee pay 'Supplier Fees'?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (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.
- (b) Franchisee Account. On each Due Date, Franchisee must pay Franchisor the fees set forth above, as well as any other amounts due to Franchisor under this Agreement or any other agreement between Franchisor and Franchisee. Franchisor may instead transfer these amounts due from the Franchisee's bank operating account ("Account"). If a transfer from Franchisee's Account is refused, an administrative fee of Twenty-Five Dollars ($25) may be assessed, as well as reimbursement to Franchisor of any fee its bank charges for uncollected deposit fu
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, a franchisee is required to pay supplier fees when the franchisor or its affiliates are the designated supplier for any required product or service for the shop. In such cases, the franchisee must pay the franchisor's or its affiliates' current rates for those products and services. This means that if Burneys Sweets More mandates that franchisees purchase ingredients, equipment, or other necessities from a specific supplier that is affiliated with the franchisor, the franchisee is obligated to pay whatever rates those suppliers charge at the time of purchase.
Additionally, Burneys Sweets More reserves the right to have suppliers bill the franchisor or an affiliate for goods and services that benefit the entire network of franchisees. In this scenario, the franchisee is responsible for paying their pro rata share of the costs and fees associated with these goods and services. This implies that franchisees could be charged for things like marketing materials, software licenses, or other resources that are used across the Burneys Sweets More system, with the cost distributed proportionally among all franchisees.
The franchisee is obligated to pay these supplier fees, along with other fees, to Burneys Sweets More on each due date as specified in the franchise agreement. The franchisor has the option to directly transfer the amounts due from the franchisee's bank operating account. If a transfer is refused due to insufficient funds, the franchisee may be assessed an administrative fee of $25, as well as any fees the franchisor's bank charges for the uncollected deposit.