What conditions must a Burneys Sweets More franchisee satisfy for license renewal?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (iv) Notice of Default. Franchisee has not received more than three (3) notices of default during any consecutive twelve-month (12) month period during the Initial Term (or the first Renewal Term, if applicable).
- (v) Renewal Agreement. Franchisee, its Owners, and its guarantors execute and deliver to Franchisor, within thirty (30) days after delivery to Franchisee, the form of BURNEY'S SWEETS & MORE franchise agreement and ancillary agreements, which agreements shall supersede this which agreements shall supersede this Agreement in all respects, and the terms, conditions, obligations, rights, and other provisions that are substantially and materially different from those spelled out in this Agreement (including, for example, different performance standards, fee structures, increased fees and/or reduced territory protections) ("Renewal Agreement").
- (vi) Renewal Fee. Franchisee has paid to Franchisor a renewal fee of Eight Thousand Five Hundred Dollars ($8,500), which fee shall be due in immediately available funds upon the execution of the Renewal Agreement. For the avoidance of doubt, Franchisee shall pay the aforementioned renewal fee prior to each Renewal Term.
- (vii) Release. Franchisee; Owners; guarantors of the Franchisee; for themselves and on behalf of their respective predecessors, affiliates, shareholders, members, partners, officers, directors, managers, employees, agents, representatives, attorneys, accountants, personal representatives, heirs, executors, administrators, successors, and assigns (collectively, "Releasors") execute and deliver to Franchisor a general release, in the form prescribed by Franchisor, releasing, to the fullest extent permitted by law, all claims that Releasors may have against Franchisor; Franchisor's predecessors, and affiliates and their respective shareholders, members, partners, officers, directors, managers, employees, agents, representatives, attorneys, accountants, guarantors, successors, and assigns, in both their corporate and individual capacit
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, a franchisee must meet several conditions to be eligible for a renewal term. The franchisee must not have received more than three notices of default during any consecutive 12-month period during the initial term (or the first renewal term, if applicable). Additionally, the franchisee, its owners, and its guarantors must execute and deliver the Burneys Sweets More franchise agreement and ancillary agreements within 30 days of delivery to the franchisee. This renewal agreement will supersede the original agreement and may contain substantially different terms, conditions, obligations, rights, and other provisions, such as different performance standards, fee structures, increased fees, and/or reduced territory protections.
Furthermore, the Burneys Sweets More franchisee must pay a renewal fee of $8,500 in immediately available funds upon the execution of the Renewal Agreement, and this fee is required prior to each Renewal Term. The franchisee, owners, and guarantors must also execute and deliver a general release, in a form prescribed by Burneys Sweets More, releasing all claims against Burneys Sweets More and its affiliates to the fullest extent permitted by law.
These conditions are typical in franchising, as franchisors want to ensure that franchisees are in good standing and committed to the brand before renewing their agreements. The renewal fee is also a common practice, as it compensates the franchisor for the continued use of their trademarks and systems. The general release protects the franchisor from any potential legal claims that the franchisee may have. Prospective franchisees should carefully review these conditions and ensure they can meet them before investing in a Burneys Sweets More franchise.