Can Burneys Sweets More sell branded merchandise within my Burneys Sweets More territory?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Regardless of either proximity to your Territory or your Shop, or any actual or threatened impact on sales of your Shop, we retain the right all rights not expressly granted to you, including, among others, to: (a) use the Marks and System in connection with establishing and operating BURNEY'S SWEETS & MORE businesses at any location outside the Territory; (b) use the Marks or other marks in connection with selling or distributing any goods (including branded merchandise or product) or services anywhere in the world (including within the Territory),
whether or not you also offer 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, delivery, or the Internet or other electronic means; (c) acquire, establish or operate, without using the Marks, any business of any kind at any location anywhere in the world (including within the Territory); (d) use the Marks in connection with soliciting or directing advertising or promotional materials to customers anywhere in the world (including within the Territory); and (e) establish or operate, or license other persons to establish or operate, a BURNEY'S SWEETS & MORE businesses within any malls, grocery stores, convenience stores, gas stations, hospitals, military installations, schools, airports, parks (including theme parks), sports arenas, commercial kitchens, and similar venues ("Non-traditional Locations") anywhere in the world (including within the Territory).
If we decide to exercise these rights, we will not be obligated to compensate you for such sales made inside or outside your Territory.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, franchisees do not have exclusive rights to the territory. Burneys Sweets More retains significant rights, including the right to sell branded merchandise within a franchisee's territory through various channels. This means that even though a franchisee operates a Burneys Sweets More shop in a specific area, Burneys Sweets More can still sell branded merchandise directly to customers in that same territory through other means.
Burneys Sweets More can distribute goods and services, including branded merchandise, within the franchisee's territory through various channels such as retail locations, kiosks, carts, food trucks, catalogs, mail order, delivery, or the Internet. This broad reservation of rights allows Burneys Sweets More to tap into different markets and customer segments, potentially impacting a franchisee's sales.
This aspect of the franchise agreement is important for potential franchisees to consider. While franchisees are granted a protected territory where Burneys Sweets More will not establish another physical Burneys Sweets More shop (excluding non-traditional locations), the franchisor's ability to sell branded merchandise through other channels within that territory introduces a competitive element. Franchisees should evaluate how this might affect their revenue projections and business strategy. It is also important to note that Burneys Sweets More is not obligated to compensate franchisees for any sales made inside or outside their territory, even if Burneys Sweets More exercises its rights to sell within the territory.