Is Burneys Sweets More obligated to negotiate with suppliers to benefit franchisees?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Because of the volume of business franchisees may bring in the future to our suggested suppliers, you may enjoy lower prices than you could receive from other suppliers, or on the other hand, you may encounter higher prices than you would otherwise encounter if you were not required to purchase from the authorized supplier. We may, but are under no obligation to, negotiate with these suppliers to your benefit. We will have no obligation to share any revenue, rebates, commissions, discounts, or other benefits received with you.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–23)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, Burneys Sweets More is not obligated to negotiate with suppliers to benefit franchisees. While the document states that franchisees may potentially benefit from lower prices due to the volume of business brought to suppliers, it also acknowledges the possibility of encountering higher prices because of the required authorized supplier purchases.
Burneys Sweets More "may, but are under no obligation to, negotiate with these suppliers to your benefit." This means that franchisees cannot rely on Burneys Sweets More to actively seek better pricing or terms on their behalf. Burneys Sweets More retains the discretion to negotiate or not, and franchisees have no recourse if they believe better deals could be obtained.
Furthermore, Burneys Sweets More explicitly states that it has "no obligation to share any revenue, rebates, commissions, discounts, or other benefits received with you." This reinforces that any potential benefits from supplier relationships accrue solely to Burneys Sweets More, not to the franchisees. This is a common practice in franchising, where franchisors often derive revenue from supplier relationships.
Prospective franchisees should be aware that while Burneys Sweets More may negotiate with suppliers, it is not required to do so, and any benefits from such negotiations may not be passed on to the franchisees. This could impact the franchisee's cost of goods and overall profitability. Franchisees are obligated to purchase between 90% and 95% of their products from authorized suppliers, so understanding the pricing and terms offered by these suppliers is crucial.