What is the purpose of the addendum in the Burneys Sweets More franchise agreement?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW THEREFORE, in consideration of the foregoing and Franchisor agreeing to enter into the Franchise Agreement, Franchisor and Franchisee agree as follows:
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- Franchisee hereby agrees to assign to Franchisor: (i) those certain telephone numbers and regular, classified or other telephone directory listings used by Franchisee in connection with operating the BURNEY'S SWEETS & MORE franchised business, including personal cellphone numbers, (ii) all e-mail addresses that use the Marks or that are used by Franchisee in connection with the operation of the Franchised Business, (iii) any Online Presence (as that term is defined in the Franchise Agreement) which uses the Marks, which Franchisee uses in connection with the operation of the Franchised Business, or which Franchisee has been permitted by Franchisor to create, and (iv) all rights, title, and interest in the content of any Online Presence, whether now-existing or adopted by Franchisee in the future (collectively the "Listings").
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- This Assignment is for collateral purposes only and, except as specified herein, Franchisor will have no liability or obligation of any kind whatsoever arising from or in connection with Franchisee's use of the Listings unless and until Franchisor notifies the telephone company, listing agencies, internet service providers, or other parties that provide the Listings (collectively, the "Providers") to effectuate the assignment pursuant to the terms hereof.
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- Upon termination, expiration, or nonrenewal of the Franchise Agreement (without renewal or extension), Franchisor will have the right and is hereby empowered to effectuate the assignment of the Listings to itself or to any third party it designates. In the event Franchisor exercises its assignment rights Franchisee will have no further right, title or interest in the Listings; provided, however, Franchisee will pay all amounts owed in connection with the Listings, including all sums owed to Franchisor, Franchisor's affiliates, or Franchisor's approved suppliers
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More Franchise Disclosure Document, the addendum to the franchise agreement serves several purposes. One key function is to ensure that upon termination, expiration, or non-renewal of the franchise agreement, certain digital assets associated with the Burneys Sweets More business are transferred to the franchisor. These assets include telephone numbers, directory listings, email addresses using Burneys Sweets More marks, and any online presence related to the franchised business.
The addendum stipulates that the franchisee assigns these listings to Burneys Sweets More. This assignment is initially for collateral purposes, meaning Burneys Sweets More doesn't immediately assume responsibility for these listings unless they notify the relevant providers. However, upon termination or non-renewal of the franchise agreement, Burneys Sweets More has the right to fully effectuate the assignment, giving the franchisee no further rights to these listings. The franchisee remains responsible for all payments associated with these listings up to that point.
This arrangement protects Burneys Sweets More's brand identity and customer relationships by ensuring that digital assets built up during the franchise term revert to the franchisor. This allows Burneys Sweets More to maintain continuity in its online presence and communication channels, regardless of changes in franchise ownership. The addendum also includes a non-disparagement clause, preventing the franchisee from speaking negatively about the Burneys Sweets More brand.