What is the condition regarding the termination of 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. Buyer will provide satisfactory evidence to Franchisor that Buyer has the right to possession of the premises for the Franchised Location by way of lease assignment (with all required landlord consents) or otherwise;
- g. Site Selection Assistance. Buyer acknowledges and agrees that Franchisor has satisfied any and all obligations under the Buyer Franchise Agreement with respect to site selection and development assistance;
- h. Remodeling. Seller and Buyer shall ensure that all of the items reflected on the Pre-Sale Inspection which is attached hereto have been completed;
- i. Purchase Agreement.
Source: Item 23 — RECEIPT (FDD pages 50–199)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More FDD, the Seller Franchise Agreement will terminate as of the closing date of the transfer of interests to a buyer. This termination is conditional upon several terms being met on or before the closing date. These conditions include the operation of the franchised location being governed by the Buyer Franchise Agreement, the seller paying all amounts due to Burneys Sweets More through the closing date (including any past due royalty and advertising fees), and the seller paying a transfer fee as specified in the Seller Franchise Agreement.
Additional conditions for the termination of the Seller Franchise Agreement include the seller providing Burneys Sweets More with all required monthly financial statements for the franchised location through the date of closing. Also, the buyer or their representative must satisfactorily complete the initial training program as described in the Buyer Franchise Agreement before the closing date.
Even after termination of the Seller Franchise Agreement, the seller is not released from obligations to pay money owed to Burneys Sweets More under the Seller Franchise Agreement or any guaranty prior to closing. The seller also remains bound by provisions of the Seller Franchise Agreement that survive termination, such as post-termination restrictive covenants, audit rights, dispute resolution and notice, and confidentiality provisions.