What is the legal structure of the Cooperative for Burneys Sweets More franchisees?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provisions shall apply to each Cooperative:
(i) Each Cooperative shall be organized and governed in a form and manner, and shall commence operation on a date, approved in advance by Franchisor in writing.
(ii) Each Cooperative shall be organized for the purposes of producing and conducting general advertising programs and activities for use in and around the applicable geographic area and developing standardized promotional materials for use by the members.
(iii) No advertising programs or materials may be used by the Cooperative or furnished to its members, and no advertising or promotional activities may be conducted by the Cooperative, without the prior written approval of Franchisor. All such programs, materials and planned activities shall be submitted to Franchisor for approval in accordance with the procedure set forth in Section 8(f).
(iv) Members of the Cooperative shall make contributions to the Cooperative in such amounts as are determined by the governing body of the Cooperative. Each member of the Cooperative shall make contributions to the Cooperative on the same basis as the other members, whether owned by Franchisee, another franchisee, Franchisor, or Franchisor's affiliates. In no event shall members be required to contribute more than Four Percent (4%) of monthly Gross Sales.
(v) Franchisee shall make its contributions to the Cooperative on the date and in the manner designated by the Cooperative.
Franchisee shall also submit such statements and reports as may be designated from time to time by the Cooperative.
The Cooperative shall submit to Franchisor such statements and reports as Franchisor may designate from time to time.
The Cooperative shall prepare written governing documents that shall be available to Franchisee and Franchisor for review.
These written governing documents are subject to Franchisor's approval.
The Cooperative is responsible for determining its own voting procedures; however, each BURNEY'S SWEETS & MORE franchised business that is a member of the Cooperative is entitled to one vote.
The Cooperative must prepare quarterly and annual financial statements and these statements must be made available to all members in the Cooperative.
The members of the Cooperative and their governing body are responsible for administering the Cooperative.
- (vi) Notwithstanding the foregoing to the contrary, Franchisor, in its sole discretion, may grant to any BURNEY'S SWEETS & MORE franchised business an exemption from the requirement of membership in a Cooperative.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More FDD, each Cooperative must be organized and governed in a form and manner approved in writing by Burneys Sweets More. The purpose of each Cooperative is to produce and conduct general advertising programs and activities for use in and around the applicable geographic area and develop standardized promotional materials for use by the members.
Franchisees are required to make contributions to the Cooperative, with the amount determined by the Cooperative's governing body. All members of the Cooperative, including franchisees, Burneys Sweets More, and its affiliates, must contribute on the same basis, but in no event shall members be required to contribute more than Four Percent (4%) of monthly Gross Sales. Franchisees must make their contributions on the date and in the manner designated by the Cooperative and submit statements and reports as required.
The Cooperative is responsible for determining its own voting procedures; however, each Burneys Sweets More franchised business that is a member of the Cooperative is entitled to one vote. The Cooperative must prepare quarterly and annual financial statements and these statements must be made available to all members in the Cooperative. The members of the Cooperative and their governing body are responsible for administering the Cooperative. Burneys Sweets More, in its sole discretion, may grant any Burneys Sweets More franchised business an exemption from the requirement of membership in a Cooperative.