How will Endless Summer Sweets and its affiliates use any fees received from third-party suppliers?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
We and our affiliates reserve the right to receive fees, payments, rebates, commissions or other consideration from third party manufacturers, suppliers, and/or distributors on their sales of products, services, equipment, goods and supplies to our affiliate and our franchisees. Except as may be described below, we and our affiliates will retain and use any fees, payments, rebates, commissions or other consideration as we deem appropriate or as required by a particular manufacturer, supplier or distributor. We may place fees, payments, rebates, commissions, allowances or other consideration we receive from some vendors with whom you do business in either the System-wide Advertising and Marketing Fund or a separate fund to cover the cost of franchisee conferences and conventions and franchisee incentive programs. We expect the amount and availability of such funds to vary from time to time based upon factors outside our control. We did not receive any revenue from franchisee purchases of goods, products and services from us or our affiliates in 2023.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 14–16)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, Endless Summer Sweets and its affiliates have the right to receive fees, payments, rebates, commissions, or other forms of consideration from third-party manufacturers, suppliers, and distributors based on their sales to both Endless Summer Sweets's affiliates and its franchisees. These fees can come from products, services, equipment, goods, and supplies.
Endless Summer Sweets has the discretion to retain and use these funds as they see fit or as required by the specific manufacturer, supplier, or distributor providing the consideration. However, Endless Summer Sweets may choose to allocate these funds to the System-wide Advertising and Marketing Fund or a separate fund designated for covering the costs of franchisee conferences, conventions, and incentive programs.
The FDD indicates that the amount and availability of these funds are subject to change based on factors outside of Endless Summer Sweets's control. In 2023, Endless Summer Sweets did not receive any revenue from franchisee purchases of goods, products, and services from Endless Summer Sweets or its affiliates. This means that while the potential exists for such revenue, it is not guaranteed and can fluctuate.