What is the scope of Burneys Sweets More's right to vary standards?
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;
- (ii) use the Marks or other marks in connection with selling or distributing any goods (including branded merchandise) or services anywhere in the world (including within the Territory), whether or not Franchisee also offers them, through channels of distribution other than a BURNEY'S SWEETS & MORE Shop (including, for example, other permanent or temporary retail locations, kiosks, carts, food trucks, catalogs, mail order, or the internet or other electronic means or through delivery by Franchisor, Franchisor's affiliates, Franchisor's franchisees, and/or third party delivery services);
- (iii) acquire, establish or operate, without using the Marks, any business of any kind at any location anywhere in the world (including within the Territory);
- (iv) use the Marks in connection with soliciting or directing advertising or promotional materials to customers anywhere in the world (including within the Territory); and
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the franchisor retains significant rights not expressly granted to the franchisee, allowing them to operate and sell products through various channels. Burneys Sweets More reserves the right to use its marks and system outside the franchisee's territory, sell goods and services through alternative distribution channels (including online), and operate any business without using the marks, even within the franchisee's territory. This reservation of rights allows Burneys Sweets More to adapt to market changes and pursue different business strategies without being restricted by individual franchise agreements.
Burneys Sweets More can establish Burneys Sweets More shops at any location outside the franchisee's territory and use marks to sell goods/services anywhere in the world through various channels. This includes retail locations, kiosks, food trucks, catalogs, the internet, or third-party delivery services. The franchisor can also use marks to solicit advertising materials to customers anywhere in the world.
For a prospective franchisee, this means Burneys Sweets More retains considerable control over the brand's development and expansion. The franchisee's rights are limited to the specific terms of their agreement, and Burneys Sweets More is not obligated to compensate franchisees for exercising its reserved rights, even if those actions impact the franchisee's sales. This could create competition or channel conflict within the Burneys Sweets More system, as the franchisor can pursue strategies that may directly compete with existing franchisees.