What are the potential benefits of Cooperative membership 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, Cooperative membership offers franchisees the advantage of participating in general advertising programs and activities within their geographic area. These cooperatives also develop standardized promotional materials for members. This allows franchisees to benefit from coordinated marketing efforts and potentially increase brand awareness and customer traffic in their local markets. However, all advertising programs and materials must receive prior written approval from Burneys Sweets More to ensure brand consistency. Franchisees contribute to the cooperative, with contributions determined by the cooperative's governing body, but these contributions cannot exceed 4% of monthly Gross Sales. 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.
Franchisees benefit from the collective resources and expertise within the cooperative, leading to potentially more effective and efficient advertising campaigns. The standardized promotional materials ensure a consistent brand message across the cooperative's area, reinforcing brand recognition. The cooperatives are responsible for determining their 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.
However, franchisees should be aware that Burneys Sweets More retains control over advertising content, as all materials require franchisor approval. Additionally, franchisees are obligated to contribute to the cooperative, which represents an additional expense, although capped at 4% of monthly gross sales. Franchisees should carefully evaluate the potential return on investment from cooperative advertising to ensure it aligns with their business goals. Burneys Sweets More may grant exemptions from the Cooperative membership requirement.
Overall, cooperative membership can be a valuable tool for Burneys Sweets More franchisees, providing access to coordinated advertising and promotional resources. However, franchisees must be prepared to contribute financially and adhere to the franchisor's advertising guidelines. Prospective franchisees should inquire about the performance and activities of existing cooperatives in their target market to assess the potential benefits of membership.