What is the 'Closing' date contingent upon for a Burneys Sweets More franchise transfer?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
ent of Franchisor. Franchisor will consent to the Transfer, as provided in the Seller Franchise Agreement, and will release (a) Seller from any obligations arising under the Seller Franchise Agreement and (b) Seller Guarantors under any guaranty agreement (in each case except as described below) from and after the Effective Date; provided, however, such consent and release are expressly contingent upon compliance with the following terms and conditions on or before the date of the closing of the Transfer ("Closing"):
- a. Franchise Agreement. The Seller Franchise Agreement will terminate as of the Closing, and the operation of the Franchised Location will thereafter be governed by the Buyer Franchise Agreement;
- b. Payment of Amounts Due. Seller will pay all amounts due and owing to Franchisor through the date of Closing; including but not limited to past due royalty and advertising fees in the amount of $_________________;
- c. Transfer Fee. Seller shall pay a transfer fee of $_________________ as provided in the Seller Franchise Agreement;
- d. Financial Statements. Seller will provide Franchisor with all required monthly financial statements for the Franchised Location through the date of Closing;
- e. Training. Buyer or Buyer's designated representative(s) shall have satisfactorily completed the initial training program as described in the Buyer Franchise Agreement prior to the Closing;
- f. Right to Possession.
Source: Item 23 — RECEIPT (FDD pages 50–199)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the franchisor's consent to a franchise transfer and the release of the seller from obligations are contingent upon several terms and conditions being met on or before the closing date of the transfer. These conditions include the termination of the Seller Franchise Agreement, with the Franchised Location's operation then governed by the Buyer Franchise Agreement.
Additionally, the seller must pay all outstanding amounts owed to Burneys Sweets More through the closing date, including any past due royalty and advertising fees. The seller is also required to pay a transfer fee as stipulated in the Seller Franchise Agreement, though the specific amounts for past due fees and the transfer fee are not specified in this section. Furthermore, the seller must provide all required monthly financial statements for the Franchised Location up to the date of closing.
Finally, the buyer, or their designated representatives, must satisfactorily complete the initial training program as outlined in the Buyer Franchise Agreement before the closing can occur. These stipulations ensure that Burneys Sweets More maintains financial and operational continuity during the transfer process and that the new franchisee is adequately prepared to manage the franchise.