What is Burneys Sweets More's policy regarding other franchisees' Brand Fund contributions?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Brand Fund. We have established the Brand Fund to support the development of new recipes and franchisee revenue sources, the evaluation and adoption of new technology, and the
creation of marketing content and public relations materials, as we, in our sole discretion, deem appropriate for the benefit of the brand. (Franchise Agreement Sections 8 (a)(ii) and 8(b))
The contribution is currently 0.5% of monthly Gross Sales. We reserve the right to raise the contribution to the Brand Fund, but not to exceed 1.5% of your Gross Sales. We may at our discretion defer Brand Fund contributions for you or another franchisee for an additional period of time we deem appropriate at the outset of your or their Shop. Other franchisees' Brand Fund contributions may be calculated at a different rate or on a different basis and, under limited circumstances, certain franchisees may not be required to pay Brand Fund fees. We have the sole discretion to settle or forgive any accrued and unpaid Brand Fund contributions owed by a franchisee.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 25–33)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the Brand Fund contribution is currently 0.5% of monthly Gross Sales. Burneys Sweets More retains the right to increase this contribution, but it will not exceed 1.5% of Gross Sales. The franchisor may also defer Brand Fund contributions for franchisees at the outset of their shop.
Notably, Burneys Sweets More has the discretion to calculate other franchisees' Brand Fund contributions at a different rate or on a different basis. In certain, limited circumstances, some franchisees may not be required to pay Brand Fund fees at all. Additionally, Burneys Sweets More has the sole discretion to settle or forgive any accrued and unpaid Brand Fund contributions owed by a franchisee.
This policy provides Burneys Sweets More with considerable flexibility in managing the Brand Fund contributions across its franchise system. For a prospective franchisee, this means that the contribution terms could vary among franchisees, potentially creating an uneven playing field. It also means that Burneys Sweets More has the power to offer incentives or accommodations to specific franchisees, which could impact the overall financial dynamics of the franchise network. A prospective franchisee should inquire about the specific criteria and circumstances under which such variations in Brand Fund contributions are applied to fully understand the potential implications for their own business.