factual

Does Burneys Sweets More grant exclusive territories to franchisees?

Burneys_Sweets_More Franchise · 2025 FDD

Answer from 2025 FDD Document

You will receive a protected area that we designate in Attachment 1 to the Franchise Agreement ("Territory"). Typically, that Territory will be defined as the smaller of (i) an area consisting of a 10-mile radius from your accepted Shop location or (ii) an area surrounding your

accepted Shop that has a population of 20,000, as determined by the latest U.S. Census data or other data we deem reliable. We will use maps we deem reliable in determining your Territory.

Your Territory is protected only to the extent that we will not establish or operate, or license any other person to establish or operate, a BURNEY'S SWEETS & MORE business under the System and the Marks at any physical location within your Territory, except at a Non-Traditional Location (as defined below). We cannot modify your territorial rights during the term of the Franchise Agreement, but we can modify your Territory upon renewal. Your territorial rights do not depend on the achievement of a certain sales volume, market penetration, or any other contingency.

You will not receive an exclusive Territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.

Unless we grant you prior approval, you must offer and sell products and services only onpremises from the BURNEY'S SWEETS & MORE Shop, and only in accordance with the requirements of the Franchise Agreement and the procedures set forth in the Brand Standards Manual. You must not offer or sell products or services through any other means or locations without our prior approval. For example, without prior approval, you may not sell goods by catering, mail order, catalog sales, computer, telemarketing, mobile application, internet sales, or delivery. You must only offer or sell products to retail customers for their use and consumption and not for resale. You may not advertise or market outside your Territory. We retain the right to control all online ordering.

Source: Item 12 — TERRITORY (FDD pages 33–35)

What This Means (2025 FDD)

According to Burneys Sweets More's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. While franchisees are granted a protected area, Burneys Sweets More retains the right to operate or license others to operate Burneys Sweets More businesses at Non-Traditional Locations within the franchisee's territory. The territory is typically defined as the smaller of either a 10-mile radius from the shop location or an area surrounding the shop with a population of 20,000, based on U.S. Census data. The franchisor also retains significant rights regarding alternative channels of distribution.

This lack of exclusivity means that a Burneys Sweets More franchisee may face competition from other franchisees, company-owned outlets, or other distribution channels controlled by the franchisor, even within their designated territory. The franchisee's territorial rights do not depend on achieving specific sales volumes or market penetration. The franchisor can modify the territory upon renewal of the Franchise Agreement, and can modify the territory during the term of the agreement if the franchisee breaches the agreement.

Furthermore, the franchisee is generally restricted to selling products and services only on-premises from their Burneys Sweets More shop, unless prior approval is granted for alternative methods such as catering or online sales. The franchisor retains control over all online ordering. The franchisee is also limited to selling to retail customers for their use and consumption, and not for resale. These restrictions, combined with the non-exclusive territory, highlight the importance of a franchisee's ability to compete effectively within their local market and the franchisor's broad rights to operate and license other businesses and channels of distribution, even within that territory.

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.