What is included in the definition of 'Collateral' for a Burneys Sweets More franchise?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Franchisee hereby agrees to assign to Franchisor: (i) those certain telephone numbers and regular, classified or other telephone directory listings used by Franchisee in connection with operating the BURNEY'S SWEETS & MORE franchised business, including personal cellphone numbers, (ii) all e-mail addresses that use the Marks or that are used by Franchisee in connection with the operation of the Franchised Business, (iii) any Online Presence (as that term is defined in the Franchise Agreement) which uses the Marks, which Franchisee uses in connection with the operation of the Franchised Business, or which Franchisee has been permitted by Franchisor to create, and (iv) all rights, title, and interest in the content of any Online Presence, whether now-existing or adopted by Franchisee in the future (collectively the "Listings").
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- This Assignment is for collateral purposes only and, except as specified herein, Franchisor will have no liability or obligation of any kind whatsoever arising from or in connection with Franchisee's use of the Listings unless and until Franchisor notifies the telephone company, listing agencies, internet service providers, or other parties that provide the Listings (collectively, the "Providers") to effectuate the assignment pursuant to the terms hereof.
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- Upon termination, expiration, or nonrenewal of the Franchise Agreement (without renewal or extension), Franchisor will have the right and is hereby empowered to effectuate the assignment of the Listings to itself or to any third party it designates. In the event Franchisor exercises its assignment rights Franchisee will have no further right, title or interest in the Listings; provided, however, Franchisee will pay all amounts owed in connection with the Listings, including all sums owed to Franchisor, Franchisor's affiliates, or Franchisor's approved suppliers
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More FDD, the collateral assigned to the Franchisor includes specific digital assets used in operating the Burneys Sweets More franchised business. This collateral assignment serves a specific purpose related to the franchise agreement.
The collateral consists of (i) telephone numbers and directory listings, including personal cellphone numbers, (ii) email addresses using the Burneys Sweets More Marks, (iii) any Online Presence (as defined in the Franchise Agreement) using the Marks, and (iv) all rights, title, and interest in the content of any Online Presence, whether existing now or adopted in the future. These items are collectively referred to as the "Listings" in the franchise agreement.
This assignment of Listings is solely for collateral purposes. Burneys Sweets More Franchisor has no liability related to the Franchisee's use of the Listings unless the Franchisor notifies the relevant providers (telephone company, listing agencies, internet service providers) to enact the assignment according to the agreement's terms. Upon termination, expiration, or nonrenewal of the Franchise Agreement, Burneys Sweets More Franchisor can assign the Listings to itself or a third party. The franchisee loses all rights to these Listings at that point. The franchisee remains responsible for all amounts owed in connection with the Listings, including sums owed to Burneys Sweets More, its affiliates, or approved suppliers.