factual

Can Burneys Sweets More or its affiliates assign or sublease the premises to a franchisee?

Burneys_Sweets_More Franchise · 2025 FDD

Answer from 2025 FDD Document

Landlord's consent to an assignment of the Form Lease or subletting of the Premises shall not be required in connection with an assignment or subletting as a part of a merger, reorganization or sale of all or substantially all of Tenant's assets or business or an assignment or sublet, or as otherwise provided for in the Franchise Agreement between Franchisor and Tenant to Franchisor, any parent, subsidiary or affiliate of Tenant or affiliate of Franchisor, or another BURNEY'S SWEETS & MORE franchisee.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to Burneys Sweets More's 2025 Franchise Disclosure Document, the landlord's consent is not required for assignment or subletting of the premises under specific conditions. These conditions include instances related to a merger, reorganization, sale of substantially all of the tenant's assets or business, or an assignment or sublet to Burneys Sweets More, its parent, subsidiary, or affiliate, or another Burneys Sweets More franchisee. This provision is outlined in the Rider attached to the Form Lease, and in case of a conflict between the Rider and the Form Lease, the terms of the Rider will take precedence.

This arrangement benefits prospective Burneys Sweets More franchisees by providing flexibility in the event of business restructuring or transfer of ownership. It streamlines the process of assigning the lease to another franchisee or to Burneys Sweets More itself, without requiring the landlord's direct consent, which can often be a time-consuming and uncertain process. This can be particularly advantageous if a franchisee wants to sell their business to another franchisee within the Burneys Sweets More system or if Burneys Sweets More needs to take over the location.

However, franchisees should carefully review the terms of both the Rider and the Form Lease to fully understand their rights and obligations. While the Rider simplifies the assignment and subletting process under specific conditions, it's crucial to ensure compliance with all other terms of the lease agreement. Franchisees should also be aware that this clause does not eliminate the need to adhere to the Franchise Agreement's requirements related to transferring ownership or control of the franchise.

It is also important to note that the landlord retains the right to recover any amounts due under the Form Lease from the tenant and can exercise their rights against the tenant as provided in the Form Lease. Therefore, franchisees must remain current with their lease obligations to avoid any potential conflicts with the landlord, irrespective of the assignment and subletting provisions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.