factual

For Burneys Sweets More, what can the Franchisor do with the payments received from suppliers?

Burneys_Sweets_More Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (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.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to the 2025 Burneys Sweets More Franchise Disclosure Document, the franchisor has specific rights regarding payments from suppliers. If Burneys Sweets More or its affiliates are the designated supplier for any required product or service for the shop, the franchisee must pay the franchisor's or its affiliates' current rates for those products and services. This means Burneys Sweets More can directly profit from being a supplier to its own franchisees, setting the rates for required goods and services.

Burneys Sweets More also reserves the right to have suppliers bill it or an affiliate for goods and services that benefit the network of Burneys Sweets More franchisees. In this case, the franchisee agrees to pay Burneys Sweets More their pro rata share of the costs and fees for these goods and services. This implies that Burneys Sweets More can arrange for services that benefit the entire franchise system and then pass the costs on to individual franchisees based on their share.

These arrangements are common in franchising, allowing the franchisor to control the supply chain and ensure quality and consistency across all locations. However, it's important for a prospective Burneys Sweets More franchisee to understand how these supplier relationships are structured, how the rates are determined, and how the pro rata share of costs is calculated to ensure transparency and fairness.

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.