Does Burneys Sweets More share any revenue received from designated suppliers with franchisees?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenue Derived. During our last fiscal year ended December 31, 2024, we received $144,633 or approximately 40.26% of our total revenue of $359,246 from franchisee purchases from approved suppliers. For each order of food our franchisees purchase from our approved food supplier, we receive a flat fee per box of croissants purchased, plus a percentage of each franchisee's total order less the value of the purchased croissants.
In the future, we may derive additional revenue from the sale of products, supplies, and equipment to you by our other approved suppliers. We reserve the right to receive payments, including rebates, commissions, and discounts, from designated suppliers based upon your purchases with them. We do not share any revenue received with you as a result of your purchases or leases and we are under no obligation to share any revenues received with you.
Neither we, nor any affiliate, nor our owners are currently approved suppliers or own an interest in an approved supplier or receive any benefit from required purchases. However, we reserve the right to become, or approve our affiliates to become, approved suppliers in the future or receive benefits from required purchases that we do not currently receive.
Warranty and Customer Service Requirements. Our franchisees guaranty the satisfaction of our customers. Therefore, if a customer complains about the food or another aspect of their dining experience, we have established certain procedures you are required to follow to resolve the concern, which could result in not charging the customer for the services provided or providing discounts for future services.
Purchasing or Distribution Cooperatives. Currently you are not required to participate in a purchasing or distribution cooperative. However, we have the right to require you to participate in a local advertising purchasing cooperative.
Product Specifications.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–23)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the franchisor does not share any revenue, rebates, commissions, or discounts received from designated suppliers with its franchisees. Burneys Sweets More retains all revenue generated from franchisee purchases from approved suppliers. During the last fiscal year ending December 31, 2024, Burneys Sweets More received $144,633, which was approximately 40.26% of their total revenue of $359,246, from franchisee purchases from approved suppliers.
Burneys Sweets More receives a flat fee per box of croissants purchased by franchisees from their approved food supplier, in addition to a percentage of each franchisee's total order, less the value of the purchased croissants. The FDD states that Burneys Sweets More reserves the right to receive payments, including rebates, commissions, and discounts, from designated suppliers based upon franchisee purchases with them.
While franchisees may potentially benefit from lower prices due to the collective buying power, Burneys Sweets More is under no obligation to negotiate with suppliers for the franchisees' benefit. Furthermore, the FDD explicitly states that Burneys Sweets More has no obligation to share any revenue, rebates, commissions, discounts, or other benefits received from suppliers with the franchisees. This is a fairly common practice in franchising, where franchisors often negotiate deals with suppliers and retain the benefits.