What is the condition regarding the Seller Franchise Agreement for Burneys Sweets More?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
lease of Guaranty. The Seller Franchise Agreement provides that the Transfer cannot take place without the consent 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 Seller Franchise Agreement stipulates that a transfer of franchise ownership cannot occur without the franchisor's consent. The franchisor will provide consent to the transfer and release the seller from obligations under the Seller Franchise Agreement and release the Seller Guarantors under any guaranty agreement after the effective date. However, this consent and release are contingent upon several conditions being met by the closing date of the transfer.
These conditions include the termination of the Seller Franchise Agreement as of the closing date, with the Buyer Franchise Agreement governing operations thereafter. The seller must also pay all outstanding amounts owed to Burneys Sweets More through the closing date, including any past due royalty and advertising fees. Additionally, the seller is responsible for paying a transfer fee as specified in the Seller Franchise Agreement, and providing all required monthly financial statements for the franchised location up to the closing date.
Furthermore, the buyer, or their designated representative, must satisfactorily complete the initial training program as outlined in the Buyer Franchise Agreement before the closing. These stipulations ensure a smooth transition of ownership, protect the franchisor's financial interests, and maintain operational standards under the new ownership. Both the buyer and seller must also acknowledge their responsibility in making the final decision to purchase and sell the interests, confirming they have sought their own legal and financial advice.