What license does Burneys Sweets More grant to the franchisee?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
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Franchisor hereby grants to Franchisee, on the terms and conditions contained in this Agreement, and Franchisee accepts from Franchisor, a license ("License") to establish, own, and operate under the System, one Shop at the location ("Location") specified in the Franchise Rider attached hereto as Attachment 1. Franchisee agrees to identify the Shop and all of the items
Franchisee sells or offers for sale only by the Marks. Franchisee has no right to use the System or the Marks for any purpose other than as expressly provided herein.
Pursuant to this grant, Franchisee, at its own expense, shall construct or remodel, and equip, staff, open and operate the Shop at the Location, in accordance with this Agreement. Unless otherwise agreed in a writing executed by Franchisor, Franchisee shall commence operating the Shop within one (1) year after the execution of this Agreement, and shall diligently operate such business in accordance with this Agreement for the Initial Term stated herein. Failure to timely open the Shop shall constitute an event of default under the Agreement.
Franchisee shall always operate the Shop in accordance with the terms of this Agreement, which terms expressly require compliance with the Brand Standards Manual (as defined in Section 11(i)) and Franchisor's standards and specifications. Franchisee covenants that during the Initial Term and any applicable Renewal Term, it will at all times faithfully, honestly and diligently perform its obligations under this Agreement, and that it will continuously exert its best efforts to promote and enhance the business of the Shop.
Franchisor and Franchisor's affiliates reserve any and all rights not expressly granted to Franchisee under this Agreement, including, without limitation, the right to sell anywhere (including within the protected Territory) products and services, (including to Franchisee's customers) under the "BURNEY'S SWEETS & MORE" name, or under any other name, through any channel of distribution other than a brick-and-mortar BURNEY'S SWEETS & MORE Shop in the protected Territory.
For the purposes of this Agreement, the use of the term "affiliate" shall mean an entity's subsidiary or parent and an entity controlled by, controlling, or under common control with, another entity.
2.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More Franchise Disclosure Document, Burneys Sweets More grants franchisees a license to establish, own, and operate one Burneys Sweets More shop at a specific location under the Burneys Sweets More system. This license is subject to the terms and conditions outlined in the franchise agreement. The franchisee agrees to operate the shop using the Burneys Sweets More marks and system. The franchisee must construct, remodel, equip, staff, open, and operate the shop at their own expense, adhering to the Brand Standards Manual and Burneys Sweets More's standards and specifications.
The license granted is not exclusive, as Burneys Sweets More retains rights not expressly granted to the franchisee. This includes the right to use the marks and system for Burneys Sweets More shops outside the franchisee's territory and to sell goods or services through other channels of distribution, such as online or through third-party delivery services, even within the franchisee's territory. Burneys Sweets More also reserves the right to operate any kind of business, without using the Burneys Sweets More marks, at any location, including within the franchisee's territory.
This means that while a franchisee is granted the right to operate a Burneys Sweets More shop, they may face competition from other Burneys Sweets More shops or alternative distribution channels operated by the franchisor, its affiliates, or other franchisees. The franchisee's territory may also exclude non-traditional locations such as malls, grocery stores, and airports, where Burneys Sweets More may establish other outlets. Upon termination or expiration of the franchise agreement, all rights granted to the franchisee revert to Burneys Sweets More, and the franchisee must cease operating the business and using Burneys Sweets More's intellectual property.