What are 'Supplier Fees' in the context of a Burneys Sweets More franchise?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iii) Supplier Fees.
If Franchisor or any of its affiliates is the designated supplier for any required product or service for the Shop, Franchisee shall pay Franchisor's or its affiliates' then-current rates for such products and services.
- (iv) Shared Fees.
Franchisor reserves the right to have suppliers bill it or an affiliate for goods and services that benefit the network of BURNEY'S SWEETS & MORE franchisees.
Franchisee agrees to pay Franchisor Franchisee's pro rata share of the costs and fees of these goods and services.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, 'Supplier Fees' refer to payments franchisees make when the franchisor or its affiliates are the designated suppliers for required products or services. In such cases, the franchisee is obligated to pay the franchisor's or its affiliates' current rates for those products and services. This means that Burneys Sweets More franchisees may be required to purchase certain items from the franchisor or approved suppliers, and they will be charged the rates in effect at that time.
Additionally, Burneys Sweets More reserves the right to have suppliers bill the franchisor or its affiliates for goods and services that benefit the entire network of franchisees. In this scenario, the franchisee is responsible for paying their pro rata share of these costs and fees. This implies that franchisees contribute to the overall benefit of the Burneys Sweets More system through these shared fees, which could cover a range of goods and services that support the brand as a whole.
It is important for prospective Burneys Sweets More franchisees to understand that these supplier fees and shared fees are in addition to other fees outlined in the franchise agreement. Franchisees should inquire about which products and services they are required to purchase from the franchisor or designated suppliers, as well as how the pro rata share of shared fees is calculated. Understanding these costs is crucial for assessing the overall financial viability of the franchise.