Can Burneys Sweets More require franchisees to participate in loyalty programs?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) Promotional Requirements. Franchisor has the right to require Franchisee to participate in loyalty programs, and national, regional, and local giveaways and promotions at Franchisee's expense. Franchisee may be required to provide free or discounted products or services as a result of such loyalty programs, giveaways, or promotions. Franchisor is not required to reimburse Franchisee for Franchisee's costs and expenses incurred as a result of these loyalty programs, giveaways, or promotions. Franchisee must honor coupons, value cards, program rewards, or memberships sold or distributed by other shops if required by Franchisor. Franchisee must not issue or offer any loyalty, or similar program without or prior approval. Franchisee must issue, redeem, and honor loyalty program incentives, and promotions Franchisor requires in accordance with Franchisor's procedures and policies.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, Burneys Sweets More has the right to require franchisees to participate in loyalty programs, giveaways, and promotions at the franchisee's expense. This includes national, regional, and local programs. As a result, franchisees may be required to provide free or discounted products or services.
Burneys Sweets More is not required to reimburse franchisees for costs incurred as a result of these programs. Franchisees must honor coupons, value cards, program rewards, or memberships sold or distributed by other shops if required by Burneys Sweets More. Franchisees are not allowed to create their own loyalty or similar programs without prior approval from Burneys Sweets More.
Franchisees must issue, redeem, and honor loyalty program incentives, and promotions that Burneys Sweets More requires, following Burneys Sweets More's procedures and policies. This means that franchisees need to be prepared to implement and manage these programs as directed by the franchisor, which could impact their operational costs and daily procedures.