factual

What is the minimum amount a Burneys Sweets More franchisee must spend on grand-opening advertising?

Burneys_Sweets_More Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (B) Local Advertising. Franchisee shall expend such amounts as Franchisor may designate from time to time for local advertising as provided in Section 8(a)(iii); provided, that the aggregate amount that Franchisee may be required to spend on local advertising together with Franchisee's Brand Fund and Cooperative contributions will not exceed four percent (4%) of the Gross Sales of the Shop, and provided further that Franchisee's expenditures for grand-opening advertising under Section 8(a)(i) shall be credited against Franchisee's local advertising obligations.
  • (iii) Local Advertising. Subject to the limits set forth in Section 8(a)(ii)(B), Franchisee agrees to spend for local advertising at least one percent (1%) of its monthly Gross Sales, or such percentage of its Gross Sales, less tips, sales taxes and gift card redemptions, as Franchisor may from time to time direct ("Local Advertising Requirement").

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to the 2025 Burneys Sweets More FDD, the amount a franchisee must spend on grand opening advertising is not explicitly stated as a fixed minimum. However, the FDD does state that grand-opening advertising expenditures are credited against the franchisee's local advertising obligations.

Burneys Sweets More franchisees are required to spend at least 1% of their monthly Gross Sales on local advertising. The FDD specifies that the aggregate amount a franchisee is required to spend on local advertising, together with Brand Fund and Cooperative contributions, will not exceed 4% of the Gross Sales of the shop.

Therefore, while there is no specific minimum for grand opening advertising, the franchisee's spending on this will offset their local advertising requirement. A prospective franchisee should clarify with Burneys Sweets More what the expected or recommended amount for grand opening advertising is to ensure adequate launch promotion while remaining compliant with advertising expenditure requirements.

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.