Does Burneys Sweets More reserve the right to implement Inflation Adjustments to fees?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Inflation Adjustments. Franchisor and its affiliates reserve the right to increase the amount of any fee provided for hereunder, including, without limitation, the Royalty and brand fund contribution, due Franchisor or an affiliate under this Agreement or a related agreement ("Inflation Adjustment"). An Inflation Adjustment shall be in relation to the changes in the Consumer Price Index (U.S. Average, all items) maintained by the U.S. Department of Labor, the cost-of-living-adjustment ("COLA") using the COLA factors determined by the United States Department of Labor, or such other measure determined reliable by Franchisor. Franchisor will notify Franchisee of the amount or percentage adjustment thirty (30) days' prior to their effective date.
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 reserves the right to implement inflation adjustments to fees. Burneys Sweets More and its affiliates can increase the amount of any fee, including the royalty and brand fund contribution, under the franchise agreement or related agreements. These adjustments are referred to as "Inflation Adjustments."
The Inflation Adjustment will be related to changes in the Consumer Price Index (U.S. Average, all items) maintained by the U.S. Department of Labor, the cost-of-living-adjustment (COLA) using the COLA factors determined by the United States Department of Labor, or another measure determined reliable by Burneys Sweets More.
Burneys Sweets More is required to notify franchisees of the amount or percentage adjustment thirty (30) days before the effective date. This allows franchisees time to prepare for the change in fees. This type of clause is relatively common in franchise agreements to account for economic changes over time.