What must a Burneys Sweets More franchisee submit to verify local advertising expenditures?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iii) Local Advertising. Subject to the limits set forth in Section 8(a)(ii)(B), Franchisee agrees to spend for local advertising at least one percent (1%) of its monthly Gross Sales, or such percentage of its Gross Sales, less tips, sales taxes and gift card redemptions, as Franchisor may from time to time direct ("Local Advertising Requirement"). Franchisee shall submit verification of its local advertising expenditures at such times and in such form as may be requested by Franchisor from time to time. In the event that Franchisee fails to meet the Local Advertising Requirement and/or fails to provide Franchisor with verification thereof, Franchisee shall pay to the Brand Fund Franchisee's Local Advertising Requirement, less the amount Franchisee actually paid for local advertising.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, a franchisee must submit verification of their local advertising expenditures. The form and timing of these submissions will be as requested by Burneys Sweets More from time to time. This requirement is tied to the franchisee's obligation to spend at least one percent (1%) of its monthly Gross Sales on local advertising, or such percentage of its Gross Sales, less tips, sales taxes and gift card redemptions, as Burneys Sweets More may from time to time direct. This is referred to as the "Local Advertising Requirement".
If a Burneys Sweets More franchisee fails to meet the Local Advertising Requirement or does not provide the required verification, they must pay the difference between what they were required to spend and what they actually spent to the Brand Fund. This ensures that all franchisees contribute to local advertising efforts, even if they do not directly manage the advertising themselves.
This requirement ensures that Burneys Sweets More franchisees actively promote their businesses locally, while also providing a mechanism for the franchisor to ensure compliance and collect funds for advertising if franchisees do not meet their obligations. Prospective franchisees should clarify with Burneys Sweets More exactly what documentation is required for verification to ensure compliance and avoid penalties.