What specific employee-related funds are Burneys Sweets More franchisees prohibited from misusing?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
(i) Use. Franchisor has the sole discretion to determine where the Brand Fund contributions will be spent to promote, enhance, or further the growth of the BURNEY'S
- SWEETS & MORE brand, shops, and System, including, but not limited to: research; promotional marketing, public relations, and advertising expenses to promote the brand; hiring marketing, public relations and advertising agencies, technology companies, or inhouse personnel to assist in developing the BURNEY'S SWEETS & MORE brand name; developing, evaluating, or using technologies that may benefit the brand, the customers, the franchisees, or the brand's reputation; developing new products and franchisee revenue sources; expenses associated with listings on websites, contest registrations, digital marketing content, influencer marketing, radio, billboard, TV, print, or internet advertising, and events and promotions designed to garner media attention and promote the brand name; brand partnerships; expenses associated with conducting market research; development of technology and enhancements for the brand; travel expenses in connection with promotions and marketing meetings, training, development of trademarks and trademarked materials; production of marketing, public relations, or digital or social media content, including, but not limited to, advertisements, coupons, and other promotional materials; expenses incurred in developing and maintaining non-franchise sales portion of an Online Presence; developing and maintaining any Online Presence; and expenses incurred in using search engine optimization, pay-per-click, or other digital marketing software, services, or companies to help promote the brand, and for any other use Franchisor determines.
Sums paid by Franchisee shall not be used to defray any of Franchisor's expenses, except for such reasonable administrative costs and overhead, if any, that Franchisor may incur in activities reasonably related to the administration or direction of the Brand Fund and promotion and advertising programs for franchisees and the System, including, among other things, the cost of personnel for creating and implementing the programs paid for by the Brand Fund.
- (ii) Administration.
The Brand Fund is not and shall not be an asset of Franchisor or its designee.
The Brand Fund is not audited.
Franchisor has no obligation to provide Franchisee with an accounting of the Brand Fund expenditures.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Burneys Sweets More Franchise Disclosure Document, franchisees contribute to a Brand Fund, which is used at the franchisor's discretion to promote the Burneys Sweets More brand. The funds are intended for purposes such as marketing, advertising, research, and developing new products.
The Brand Fund contributions made by Burneys Sweets More franchisees cannot be used to cover the franchisor's expenses, except for reasonable administrative costs and overhead that the franchisor incurs while managing the Brand Fund and related advertising programs. This means that while the franchisor can use the fund to pay for personnel involved in creating and implementing marketing programs, the bulk of the fund must be directed towards promoting the brand and supporting the franchise system rather than benefiting the franchisor directly.
This arrangement ensures that franchisees' contributions are primarily used for the collective benefit of the Burneys Sweets More franchise system. However, the FDD states that the Brand Fund is not audited, and Burneys Sweets More has no obligation to provide franchisees with an accounting of how the Brand Fund expenditures are allocated. This lack of transparency may be a concern for some franchisees, as they have limited insight into how their contributions are being used.