What is the 'Account' referring to in the Burneys Sweets More franchise agreement?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (b) Franchisee Account. On each Due Date, Franchisee must pay Franchisor the fees set forth above, as well as any other amounts due to Franchisor under this Agreement or any other agreement between Franchisor and Franchisee. Franchisor may instead transfer these amounts due from the Franchisee's bank operating account ("Account"). If a transfer from Franchisee's Account is refused, an administrative fee of Twenty-Five Dollars ($25) may be assessed, as well as reimbursement to Franchisor of any fee its bank charges for uncollected deposit funds. If Franchisee has not reported Gross Sales to Franchisor for any fiscal period, Franchisor may transfer from the Account an amount equal to the average of the preceding three (3) months' Gross Sales. If, at any time, Franchisor determines that Franchisee has underreported its Gross Sale
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the 'Account' refers to the franchisee's bank operating account. Burneys Sweets More is authorized to transfer funds from this account to cover fees and other amounts the franchisee owes under the Franchise Agreement or any other agreement between the franchisee and franchisor. This process streamlines payments and ensures Burneys Sweets More receives owed funds promptly.
If a transfer from the franchisee's bank operating account is refused, Burneys Sweets More may charge an administrative fee of $25, along with any fees their bank charges for the uncollected deposit. This provision incentivizes franchisees to maintain sufficient funds in their account and avoid issues with fund transfers.
Furthermore, if a franchisee fails to report gross sales for any fiscal period, Burneys Sweets More has the right to transfer an amount equal to the average of the preceding three months' gross sales from the franchisee's account. This measure protects Burneys Sweets More's interests by ensuring that fees based on gross sales are still collected even if the franchisee does not provide the necessary sales reports. If Burneys Sweets More determines that a franchisee has underreported gross sales, they also have the right to transfer funds from the account to correct the underpayment.