What triggers the 'Enforcement Costs' fee for a Burneys Sweets More franchise?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Insurance Premium Reimbursement | Actual out-of-pocket costs; varies according to plan and provider. | Upon demand. | If you do not purchase the required insurance, we may purchase it and you must reimburse us. |
| Enforcement Costs | Our costs and expenses. | As incurred. | You must pay our costs of enforcement (including attorneys' fees and costs) if you do not comply with the Franchise Agreement. |
| Continued Operation After Expiration | Greater of $1,000 per month or 150% of royalties per month. | Monthly | If we permit you continue to operate the Franchised Business on a month-to month basis after expiration of the Franchise Agreement, then you must pay to us, in addition to all Royalties and other fees due to us, a monthly fee equal to the greater of $1,000 or 150% of the royalties due for the same month for every month during the month-to-month operations, up to our then-current initial franchise fee. |
| Insufficient Funds | $25 plus any fee charged us for uncollected funds. | Upon notice | Failure to have sufficient funds available for payments to us. |
| Failure to attend required training/convention | Increase royalty by up to 1% for balance of calendar year. | Upon notice of infraction. Will be collected by EFT. | Additional royalty to compensate us for your failure to attend training/convention. |
| Quality Control Review Services | Our costs and expenses. | As incurred. | If we implement a quality control program, you will pay your share of the costs and expenses of the program. |
| Name of Fee1 | Amount | Due Date | Remarks |
| --------------------------------------- | ----------------------------------------------------------------------------- | -------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Third Party Supplier Charges | Your share of any charges billed to us on behalf of your business. | As incurred. | Sometimes it may be in the best interest of the BURNEY'S SWEETS & MORE brand for suppliers to bill us a system-wide charge for a product or service. We will then divide the invoice among our franchisees and charge you for your share. |
| Data Inspections and Reimbursement | Our costs and expenses. | Upon demand. | If you repeatedly violate the required data privacy and security obligations under the Franchise Agreement, we reserve the right to charge you our costs and expenses to inspect your business. Additionally, you are responsible for our costs and expenses that arise from your non-compliance or a security breach caused by you or your personnel. |
| Goods and Services | Current prices and fees. | As incurred | We may be the supplier of goods and services in the future and you may be required to pay us for those goods and services at the then-current rates. |
| Business Directory Listings | Actual out-of-pocket costs. | Upon demand. | You will place and pay the cost of business listings in the directories and categories we specify. Alternatively, we can do so on your behalf and at your expense. |
Source: Item 6 — OTHER FEES (FDD pages 11–17)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the 'Enforcement Costs' fee is incurred when a franchisee fails to comply with the Franchise Agreement. These costs cover Burneys Sweets More's expenses related to enforcing the agreement, including attorney's fees. The amount of the fee is based on Burneys Sweets More's actual costs and expenses, and it is due as those costs are incurred.
For a prospective Burneys Sweets More franchisee, this means that strict adherence to the Franchise Agreement is crucial to avoid unexpected expenses. The Franchise Agreement likely outlines specific operational standards, marketing requirements, and other obligations that franchisees must meet. Failure to meet these standards, even unintentionally, could lead to the franchisor taking action and charging the franchisee for enforcement costs.
It's important for potential franchisees to carefully review the Franchise Agreement and understand all of their obligations. This includes seeking legal counsel to clarify any ambiguous terms or conditions. By fully understanding and complying with the agreement, franchisees can minimize the risk of incurring enforcement costs and maintain a positive relationship with Burneys Sweets More.
Franchise agreements are legally binding documents, and it is common practice for franchisors to pass on enforcement costs to franchisees who violate the terms of the agreement. This is to protect the brand and ensure consistency across all franchise locations.