What is a Burneys Sweets More franchisee prohibited from doing that would damage the reputation of other franchisees?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees not to, and to use its best efforts to cause its current and former shareholders, officers, directors, principals, agents, partners, employees, representatives, attorneys, spouses, and successors and assigns not to, disparage or otherwise speak or write negatively, directly or indirectly, of Franchisor or Franchisor Affiliates or their respective current and former agents, principals, officers, directors, shareholders, members, employees, franchisees, representatives, area directors, attorneys, parents, predecessors, affiliates, subsidiaries divisions, and successors and assigns, the BURNEY'S SWEETS & MORE brand, the BURNEY'S SWEETS & MORE system, or any other service-marked or trademarked concept of Franchisor, or which would subject the BURNEY'S SWEETS & MORE brand to ridicule, scandal, reproach, scorn, or indignity or which would negatively impact the goodwill of Franchisor or its brand.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More FDD, a franchisee is prohibited from disparaging the Burneys Sweets More brand. The franchisee must also ensure that their current and former shareholders, officers, directors, principals, agents, partners, employees, representatives, attorneys, spouses, and successors and assigns do not speak or write negatively about Burneys Sweets More. This includes any actions that could subject the brand to ridicule, scandal, reproach, scorn, or indignity, or negatively impact the goodwill of Burneys Sweets More or its brand.
This non-disparagement clause is a standard provision in franchise agreements. It aims to protect the brand's reputation and maintain a positive image. By preventing franchisees from making negative statements, Burneys Sweets More seeks to avoid damage to its brand and the potential loss of customers or investors. This clause extends beyond just the franchisee to include related parties, highlighting the importance Burneys Sweets More places on safeguarding its reputation.
For a prospective Burneys Sweets More franchisee, this means being mindful of all communications related to the franchise. Any negative comments, whether public or private, could be a breach of the franchise agreement. Franchisees should ensure that anyone associated with their business is also aware of this restriction. This clause remains in effect even after the franchise agreement ends, meaning that former franchisees must also adhere to the non-disparagement terms.