factual

What section of the Franchise Agreement discusses advertising requirements for Burneys Sweets More?

Burneys_Sweets_More Franchise · 2025 FDD

Answer from 2025 FDD Document

You may develop advertising materials for your own use at your own cost. We encourage the sharing by franchisees of advertising ideas and materials. We require you to submit advertising and promotional materials to us in advance and to obtain our approval before using them. You are required to follow our instructions in connection with any advertising or promotional materials we provide for your use. (Franchise Agreement Section 8(g).) Failure to follow our instructions regarding pre-approval of advertising materials will result in fines. These fines will be as follows: 1 st infraction: $0, 2nd infraction: $100, and third or subsequent infraction: $500. Imposition of these fines will in no way waive our right to consider your use of unapproved advertising as a default-triggering event, such as that described at Franchise Agreement Section 17(c)(v).

Brand Fund. We have established the Brand Fund to support the development of new recipes and franchisee revenue sources, the evaluation and adoption of new technology, and the

creation of marketing content and public relations materials, as we, in our sole discretion, deem appropriate for the benefit of the brand. (Franchise Agreement Sections 8 (a)(ii) and 8(b))

The contribution is currently 0.5% of monthly Gross Sales. We reserve the right to raise the contribution to the Brand Fund, but not to exceed 1.5% of your Gross Sales. We may at our discretion defer Brand Fund contributions for you or another franchisee for an additional period of time we deem appropriate at the outset of your or their Shop. Other franchisees' Brand Fund contributions may be calculated at a different rate or on a different basis and, under limited circumstances, certain franchisees may not be required to pay Brand Fund fees. We have the sole discretion to settle or forgive any accrued and unpaid Brand Fund contributions owed by a franchisee.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 25–33)

What This Means (2025 FDD)

According to the 2025 Burneys Sweets More FDD, several sections within the Franchise Agreement address advertising requirements. Specifically, Sections 8(a)(ii) and 8(b) relate to the Brand Fund, which supports marketing content and public relations materials. Section 8(g) outlines the franchisee's responsibility to submit advertising and promotional materials for approval and to adhere to Burneys Sweets More's instructions. Section 8 generally discusses Burneys Sweets More's right to conduct advertising and supply advertising material.

For a prospective Burneys Sweets More franchisee, this means they have the freedom to develop their own advertising materials, but must submit them for approval before use. Failure to get pre-approval can result in fines: $0 for the first infraction, $100 for the second, and $500 for the third or subsequent infractions. These fines do not waive Burneys Sweets More's right to consider unapproved advertising as a default event under Section 17(c)(v) of the Franchise Agreement.

Burneys Sweets More has established a Brand Fund, where the contribution is currently 0.5% of monthly Gross Sales, but can be raised to a maximum of 1.5%. These funds are used at Burneys Sweets More's discretion to promote the brand. Company-owned locations are contributing to the Brand Fund on the same basis as franchisees. The Brand Fund is not audited, but an accounting can be obtained annually upon written request to the Chief Executive Officer.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.