factual

Can Burneys Sweets More reinstate territory protections that were previously removed?

Burneys_Sweets_More Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor and Franchisor's affiliates reserve any and all rights not expressly granted to Franchisee under this Agreement, including, without limitation, the right to sell anywhere (including within the protected Territory) products and services, (including to Franchisee's customers) under the "BURNEY'S SWEETS & MORE" name, or under any other name, through any channel of distribution other than a brick-and-mortar BURNEY'S SWEETS & MORE Shop in the protected Territory.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to the 2025 Burneys Sweets More FDD, Burneys Sweets More retains all rights not expressly granted to the franchisee. This includes the right to sell products and services anywhere, even within a franchisee's protected territory, through channels other than a brick-and-mortar Burneys Sweets More shop. These alternate channels could operate under the Burneys Sweets More name or any other name.

Burneys Sweets More can sell within the protected territory through various distribution channels, such as other retail locations, kiosks, carts, food trucks, catalogs, mail order, the internet, or third-party delivery services. This means that even with a protected territory, a Burneys Sweets More franchisee may face competition from the franchisor's other sales channels within their territory.

The FDD states that until a location is identified and agreed upon in the Franchise Rider or Site Selection Acceptance Letter, no territory is granted to the franchisee. Burneys Sweets More has the right to locate other franchises anywhere without interfering with territorial rights until the location agreement is finalized. Franchisees are not allowed to solicit business from customers outside their territory without prior written permission from Burneys Sweets More. However, Burneys Sweets More does not guarantee protection from other shops soliciting or making sales within the franchisee's territory.

In practical terms, while a Burneys Sweets More franchisee may be granted a territory, this territory is subject to several limitations and does not guarantee exclusive rights within that area. The franchisor retains significant control over sales and distribution channels, potentially impacting a franchisee's revenue. A prospective franchisee should carefully consider these factors and discuss the specifics of territorial protection with Burneys Sweets More before signing the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.