What is the understanding reached between the Associate and Burneys Sweets More regarding noncompetition?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Noncompetition Agreement ("Agreement") is made and entered into as of ("Effective Date") by and between DMG BURNEY INC., a North Carolina corporation ("Franchisor") and ("Associate"). All initially capitalized terms not otherwise defined herein shall have the meanings set forth in the Franchise Agreement. |
|---|
| RECITALS |
| A. |
| The Franchisor is engaged in the business of franchising a unique system for |
| operating limited-seating, fast-casual Shops emphasizing high-quality, glazed and stuffed |
| croissants, donuts, cakes, pies, cookies, other dessert items, coffee and other beverages |
| ("Franchised Business"). |
| The Franchised Businesses are operated under the Franchisor's |
| trademark "BURNEY'S SWEETS & MORE" and other service marks, trademarks, logo types, |
| architectural designs, trade dress and other commercial symbols (collectively, the "Marks"); |
| B. |
| The Franchisor has developed methods for establishing, operating and promoting |
| Franchised Businesses pursuant to the Franchisor's Confidential Information (defined below) and |
| such Confidential Information as may be further developed from time to time by the Franchisor |
| ("System"); |
| C. |
| The Franchisor and its affiliates have established substantial goodwill and an |
| excellent reputation with respect to the quality of products and customer service, which goodwill |
| and reputation have been and will continue to be of major benefit to the Franchisor; |
| D. |
| Associate desires to become involved with a ("Franchisee"), a |
| franchisee of the Franchisor that operates a Franchised Business in in the |
| capacity of an owner, officer, partner, director, or agent of the Franchised Business, or is a spouse |
| or domestic partner of an owner of a Franchised Business, and will become privileged as to certain |
| Confidential Information. Associate may or may not have signed the Franchise Agreement or |
| Guaranty and Assumption of Franchisee's Obligations form; and |
| E. |
| Associate and the Franchisor have reached an understanding with regard to |
| noncompetition by Associate with the Franchisor and other franchisees of the Franchisor. |
| Associate agrees to the terms of this Agreement as partial consideration for the Franchisor's |
| willingness to allow Associate to engage in a business relationship with Franchisor or Franchisee |
| using the Franchisor's Confidential Information. |
| NOW THEREFORE, in consideration of the foregoing, the mutual promises contained |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More FDD, the Associate and Burneys Sweets More have come to an understanding regarding noncompetition. The Associate, who may be an owner, officer, partner, director, agent, spouse, or domestic partner of an owner of a Burneys Sweets More franchise, agrees to the terms of a Noncompetition Agreement as consideration for being allowed to engage in a business relationship with Burneys Sweets More or its franchisees, particularly concerning access to Burneys Sweets More's confidential information. This agreement is made and entered into by and between DMG BURNEY INC. and the Associate.
The recitals of the agreement highlight that Burneys Sweets More operates a unique franchise system for fast-casual shops emphasizing high-quality desserts and beverages under the "BURNEY'S SWEETS & MORE" trademark. Burneys Sweets More has developed methods for operating and promoting these franchised businesses using confidential information and has established substantial goodwill and a reputation for quality products and customer service.
This noncompetition agreement is a legal contract where the Associate agrees to certain restrictions to protect Burneys Sweets More's interests. It acknowledges that the Associate will have access to confidential information and that the agreement's terms are part of the consideration for allowing the Associate to be involved with a Burneys Sweets More franchise. The agreement aims to prevent the Associate from using Burneys Sweets More's confidential information to compete against them or other franchisees.