What are the restrictions on using unauthorized suppliers at a Burneys Sweets More franchise?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (i) solicit, divert, or attempt to solicit or divert, any vendor that has done business with the Shop during the one (1) year period prior to the expiration, termination, or non-renewal of this Agreement to provide supplies, products, equipment, merchandise, or services to a Competitive Business or to cease providing supplies, products, equipment, merchandise, or services to BURNEY'S SWEETS & MORE businesses; or
- (ii) solicit, divert or attempt to solicit or divert any person or party that was a customer of the Shop during the one (1) year period prior to the expiration, termination, or non-renewal of this Agreement, to any Competitive Business.
- (e) Restrictive Territory. For purposes of this Section 14, the term "Restrictive Territory" means the following:
- (i) At the Location of the Franchised Business; or
- (ii) The Territory served by Franchisee (as defined in Attachment 1) as that Territory exists on the date of termination, expiration, non-renewal, or transfer of this Agreement; or
- (iii) The territories in which Franchisor or its affiliates operate any BURNEY'S SWEETS & MORE businesses or locations as of the date of termination, expiration, nonrenewal, or transfer of this Agreement, including their locations; or
- (iv) The territories of any of Franchisor's other BURNEY'S SWEETS & MORE franchisees as those territories exist as of the date of termination, expiration, nonrenewal, or transfer of this Agreement, including their locations; or
- (v) An area which is within a 10-mile radius of:
- (A) The Location of the Franchised Business as of the date of termination, expiration, non-renewal, or transfer of this Agreement, including the Location, or
- (B) The location of any other BURNEY'S SWEETS & MORE shops owned by Franchisor or its affiliates or franchisees as of the date of termination, expiration, non-renewal, or transfer of this Agreement, including those locations.
- (f) Reasonableness.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More FDD, there are post-term restrictions regarding suppliers. Specifically, the franchisee is prohibited from soliciting or diverting any vendor that has done business with the Burneys Sweets More shop during the one-year period prior to the expiration, termination, or non-renewal of the franchise agreement. This restriction prevents the franchisee from encouraging these vendors to supply a Competitive Business or to stop providing supplies, products, equipment, merchandise, or services to existing Burneys Sweets More businesses. A Competitive Business is defined as any business, other than a Burneys Sweets More franchise, that derives 25% or more of its gross sales from bakery items or sells any amount of glazed and deep-fried croissants.
The restrictive territory where these post-term non-solicitation covenants apply includes the location of the franchised business, the territory served by the franchisee, the territories where Burneys Sweets More or its affiliates operate, the territories of other Burneys Sweets More franchisees, and an area within a 10-mile radius of the franchised business location. These restrictions are in place to protect Burneys Sweets More's relationships with its vendors and to prevent franchisees from leveraging those relationships to benefit a competing business after leaving the franchise system.
These restrictions are intended to protect Burneys Sweets More's established vendor relationships and maintain the integrity of its supply chain. For a prospective franchisee, this means that while they operate the franchise, they must adhere to the approved supplier network. Upon leaving the system, they cannot actively disrupt Burneys Sweets More's supply chain by soliciting its vendors for a competing business within the defined restrictive territory and time period. This is a fairly standard practice in franchising, as franchisors typically want to safeguard their established business relationships.