What is the 'Closing' date referring to in the context of 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 "Closing" date in the context of a franchise transfer refers to the date on or before which specific terms and conditions must be met for the transfer to proceed.
Specifically, Burneys Sweets More requires that the seller's franchise agreement will terminate as of the Closing date, and the buyer's franchise agreement will govern the location's operation thereafter. Prior to this date, the seller must pay all outstanding amounts to the franchisor, including any past due royalty and advertising fees. The seller is also responsible for paying a transfer fee as stipulated in their franchise agreement. Additionally, the seller needs to provide all required monthly financial statements up to the Closing date. The buyer, or their representative, must also complete the initial training program before the Closing.
In essence, the Closing date represents a critical milestone in the transfer process, signifying the point at which control and responsibility for the Burneys Sweets More franchise transition from the seller to the buyer, contingent upon fulfilling all outlined obligations.