Does Burneys Sweets More have the right to require franchisees to participate in national giveaways?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
").
- (b) Reservation of Rights. Franchisor grant franchises and the rights to develop and operate a BURNEY'S SWEETS & MORE Shop only pursuant to the express terms of written agreements and not orally. All rights that are not granted to Franchisee in this Agreement are specifically reserved to Franchisor, and Franchisor will not be restricted in any manner from exercising them nor will Franchisor be required to compensate Franchisee should Franchisor exercise them. This includes the right, directly or through others and regardless of either (a) proximity to Franchisee's Shop or Territory or (b) any actual or threatened impact on sales of Franchisee's Shop to:
- (i) use the Marks and System in connection with establishing and operating BURNEY'S SWEETS & MORE shops at any location outside the Territory;
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Burneys Sweets More Franchise Disclosure Document, the franchisor retains rights not explicitly granted to the franchisee. This includes the right to use marks in connection with advertising and promotional materials directed to customers anywhere in the world, including within the franchisee's territory.
While the FDD excerpts discuss advertising cooperatives and supplemental advertising, they do not explicitly state whether Burneys Sweets More has the right to mandate franchisee participation in national giveaways. The franchisee is required to arrange for directory listings designated by Burneys Sweets More and all advertising and promotional materials used by the franchisee must be approved by Burneys Sweets More.
A prospective franchisee should seek clarification from Burneys Sweets More regarding the specifics of required participation in national giveaways, including any associated costs, obligations, and potential benefits. It would be prudent to discuss the degree to which franchisees can control or influence the giveaways and how the costs are allocated.