What is the range for the Royalty fee for a Burneys Sweets More franchise?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS MADE | |
|---|---|---|---|---|---|
| LOW | HIGH | ||||
| PRE-OPENING COSTS1 | |||||
| Initial Franchise Fee | $20,000 | $20,000 | Lump sum | Due on signing Franchise Agreement | Us |
| Inventory2 | $8,800 | $27,500 | Vendor terms | Within 0 - 30 days of order | Approved vendors |
| Lease3 | $22,000 | $82,500 | Landlord terms | Monthly, depending on lease agreement | Landlord |
| Leasehold Improvements and Fixtures4 | $22,000 | $300,000 | Lump sum or (possibly) amortized by landlord | Varies depending on your contract with supplier | Supplier or Landlord |
| Furnishings | $1,100 | $20,000 | As incurred | Varies depending on your contract with supplier | Approved suppliers |
| Signage | $880 | $8,800 | As incurred | Varies depending on your contract with supplier | Approved suppliers |
| TYPE OF EXPENDITURE | AMOUNT LOW | HIGH | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS MADE |
| Equipment and Smallwares5 | $55,000 | $154,000 | As incurred | Varies depending on contract with supplier | Approved supplier |
| Point of Sale | $1,500 | $1,899 | As incurred | Monthly | Approved |
| System6 | supplier | ||||
| Deposits7 | $440 | $2,200 | Lump sum | Usually before opening | Landlord, utili- ties, phone co. |
| Insurance8 | $3,300 | $5,500 | As incurred | Varies depending on contract with supplier. | Approved supplier |
| Business Licenses | $28 | $330 | As incurred | Varies depending on jurisdiction | Local, state, federal government; approved vendors |
| Training living expenses | $1,650 | $4,400 | As incurred | Before opening | Air travel, hotels, meals, incidentals |
| Grand Opening Marketing9 | $550 | $2,750 | These expenditures commence on an as incurred basis as early as 60 days’ prior to the opening of your Shop and will continue through the first 30-60 days of operation | As incurred | Suppliers |
| Brand Fund Fee— 3 months | 0.5% of monthly Gross Sales | 1.5% of monthly Gross Sales | Paid monthly in lump sum | EFT | Us |
| Royalty | 3% of monthly Gross Sales | 5% of monthly Gross Sales | Paid monthly in lump sum | EFT | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–20)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the royalty fee ranges from 3% to 5% of monthly Gross Sales. This ongoing fee is a percentage of the total revenue the franchise generates each month. The franchisee must pay this royalty fee monthly in a lump sum via EFT (Electronic Funds Transfer) to Burneys Sweets More.
The royalty fee compensates Burneys Sweets More for the continued use of its brand name, operating systems, and ongoing support. It is a standard component of most franchise agreements. The specific percentage a franchisee pays may depend on factors such as sales volume, location, or the terms negotiated in the franchise agreement.
Prospective Burneys Sweets More franchisees should carefully consider the royalty fee when evaluating the financial viability of the franchise. It's crucial to factor this ongoing expense into their financial projections and ensure they can maintain profitability while paying the royalty. Understanding how gross sales are defined and calculated is also important to accurately forecast royalty payments.