factual

What are Burneys Sweets More franchisees required to do with advertising and promotional materials?

Burneys_Sweets_More Franchise · 2025 FDD

Answer from 2025 FDD Document

You may develop advertising materials for your own use at your own cost. We encourage the sharing by franchisees of advertising ideas and materials. We require you to submit advertising and promotional materials to us in advance and to obtain our approval before using them. You are required to follow our instructions in connection with any advertising or promotional materials we provide for your use. (Franchise Agreement Section 8(g).) Failure to follow our instructions regarding pre-approval of advertising materials will result in fines. These fines will be as follows: 1 st infraction: $0, 2nd infraction: $100, and third or subsequent infraction: $500. Imposition of these fines will in no way waive our right to consider your use of unapproved advertising as a default-triggering event, such as that described at Franchise Agreement Section 17(c)(v).

Brand Fund. We have established the Brand Fund to support the development of new recipes and franchisee revenue sources, the evaluation and adoption of new technology, and the

creation of marketing content and public relations materials, as we, in our sole discretion, deem appropriate for the benefit of the brand. (Franchise Agreement Sections 8 (a)(ii) and 8(b))

The contribution is currently 0.5% of monthly Gross Sales. We reserve the right to raise the contribution to the Brand Fund, but not to exceed 1.5% of your Gross Sales. We may at our discretion defer Brand Fund contributions for you or another franchisee for an additional period of time we deem appropriate at the outset of your or their Shop. Other franchisees' Brand Fund contributions may be calculated at a different rate or on a different basis and, under limited circumstances, certain franchisees may not be required to pay Brand Fund fees.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 25–33)

What This Means (2025 FDD)

According to Burneys Sweets More's 2025 Franchise Disclosure Document, franchisees are required to adhere to specific guidelines regarding advertising and promotional materials. Franchisees can develop their own advertising materials at their own expense and are encouraged to share ideas with other franchisees. However, all advertising and promotional materials must be submitted to Burneys Sweets More for approval before use. Franchisees are also required to follow any instructions provided by Burneys Sweets More in connection with advertising or promotional materials that the franchisor provides.

Failure to obtain pre-approval for advertising materials can result in fines. The first infraction results in no fine, the second infraction incurs a $100 fine, and the third or subsequent infractions will result in a $500 fine. Furthermore, Burneys Sweets More retains the right to consider the use of unapproved advertising as a default-triggering event under the Franchise Agreement.

Burneys Sweets More also requires franchisees to spend at least 1% of their monthly Gross Sales on local advertising. Franchisees must submit documentation at least quarterly to verify compliance with this requirement. If a franchisee spends less than the required 1% on local advertising, they must pay the difference to the Brand Fund. Additionally, franchisees must spend at least $500 before or within the first 3 months after opening their shop to promote the grand opening, which can be counted toward the 1% local advertising requirement.

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.