Can changes to the Burneys Sweets More System necessitate capital expenditures?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
ng. Franchisor reserves the right to require Franchisee to generally refurbish the Franchised Business and/or the Premises at Franchisee's expense, in order to conform to the building design, trade dress, color schemes and presentation of the Marks in a manner consistent with the then-current image for BURNEY'S SWEETS & MORE franchises, which include, without limitation, structural changes, installation of new materials and equipment, remodeling, redecoration, changing color schemes, and modifications and/or repairs to existing improvements. Such remodeling and re-equipping may include, without limitation, replacing worn out, obsolete, or dated equipment, fixtures, furnishings and signs;
structural modifications, redecorating; or purchasing more efficient or improved equipment. Franchisor may require Franchisee to perform remodeling and to purchase equipment at such times as Franchisor, in its sole discretion, deems necessary and reasonable; provided, that Franchisor may not require any remodeling requiring an expenditure in excess of Thirty Thousand Dollars ($30,000) during the first two (2) years of the Initial Term unless the expenditure is necessary for menu item production as determined by Franchisor. FRANCHISEE ACKNOWLEDGES THAT EQUIPMENT, ALTERATIONS AND RENOVATIONS REQUIRED BY FRANCHISOR MAY INVOLVE SUBSTANTIAL ADDITIONAL INVESTMENT BY FRANCHISEE DURING THE INITIAL TERM. In the event of Franchisee's delay, refusal, or failure to make repairs or modifications to the Premises as specified by this Section 10(c), Franchisor or its agents may enter the Premises, without further notice and without liability for trespass or other tort and with Franchisee's complete cooperation, and remove, repair, and/or replace, at Franchisee's expense, any items which do not conform to Franchisor's then-current standards and specifications or which are not in conformity with Franchisee's obligation to maintain the Franchised Business and the Premises in the highest degree of repair and condition. In addition to any and all other remedies that Franchisor may have in law or in equity, Franchisee shall reimburse Franchisor for all out-ofpocket expenses incurred by Franchisor in connection with any refurbishing work performed by Franchisor pursuant to this Section 10(c), plus an administrative fee of fifteen percent (15%) of the total aggregate amount of expenses incurred by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, changes to the Burneys Sweets More system can indeed necessitate capital expenditures for franchisees. Burneys Sweets More reserves the right to require franchisees to refurbish their franchised business and premises to conform to the current image of the brand. This includes structural changes, installing new materials and equipment, remodeling, redecoration, changing color schemes, and modifications or repairs to existing improvements. These changes are at the franchisee's expense.
These remodeling and re-equipping requirements may include replacing outdated equipment, fixtures, furnishings, and signs, as well as structural modifications and purchasing more efficient equipment. Burneys Sweets More has the discretion to decide when these remodels and equipment purchases are necessary and reasonable. However, Burneys Sweets More cannot require remodeling expenditures exceeding $30,000 during the first two years of the initial term, unless it is deemed necessary for menu item production.
The FDD acknowledges that these alterations and renovations may involve substantial additional investment by the franchisee during the initial term. If a franchisee fails to make the required repairs or modifications, Burneys Sweets More has the right to enter the premises and make the changes at the franchisee's expense. Franchisees are responsible for bearing all expenses associated with changes, revisions, or substitutions of different marks, and Burneys Sweets More is not obligated to compensate franchisees for these costs.
This means that a prospective Burneys Sweets More franchisee needs to be prepared for potential significant capital expenditures throughout the term of the franchise agreement to keep the business aligned with the brand's current image and standards. It is important to factor in these potential costs when evaluating the financial feasibility of the franchise. Franchisees should inquire about the typical frequency and cost of required updates and remodels to better understand the long-term investment requirements.