factual

Are all Burneys Sweets More franchisees required to contribute to the Brand Fund at the same rate?

Burneys_Sweets_More Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee acknowledges that other franchisees may not be required to contribute to the Brand Fund or may be required to contribute at a different rate than Franchisee.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to Burneys Sweets More's 2025 Franchise Disclosure Document, franchisees may not all be required to contribute to the Brand Fund at the same rate. The document states that Burneys Sweets More acknowledges that some franchisees may not be required to contribute to the Brand Fund at all, or they may be required to contribute at a different rate than other franchisees. This indicates that the contribution requirements can vary among franchisees.

The Brand Fund contributions are used at the discretion of Burneys Sweets More to promote and enhance the brand. These funds can be allocated towards various marketing and promotional activities, research, and development of new products and technologies. The document specifies that Burneys Sweets More is not obligated to ensure that the expenditures from the Brand Fund in any geographic area are proportional or equivalent to the contributions made by franchisees in that area. This means that a franchisee's contribution does not guarantee a direct or proportional benefit to their specific location.

This lack of uniformity in contribution rates and the non-proportionality of benefits from the Brand Fund could be a point of consideration for prospective franchisees. It is important to note that Burneys Sweets More retains sole discretion over Brand Fund expenditures and is not obligated to provide franchisees with an accounting of these expenditures. Additionally, the Brand Fund is not treated as a trust fund, and Burneys Sweets More has no fiduciary duty to franchisees regarding the collection or use of Brand Fund monies.

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.