What is considered a 'Related Party' when leasing a Burneys Sweets More premises?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Option to Lease. Landlord hereby agrees that, (i) in the event of the termination, non-renewal, or expiration of the Franchise Agreement by and between Tenant and Franchisor; (ii) the termination of the Form Lease for any cause whatsoever including, without limitation, a default by Tenant under the Form Lease after expiration of any applicable notice and cure periods; (iii) in the event of Tenant's failure to exercise any extension option contained in the Form Lease, (iv) upon the expiration of the Form Lease and any rights to extension or renewal; or (v) as otherwise permitted under the Franchise Agreement, Franchisor, any parent, subsidiary or affiliated company of Franchisor, or another BURNEY'S SWEETS & MORE franchisee shall have the option to lease the Premises pursuant to the same terms and conditions as are contained in the Form Lease, in accordance with the following:
- (a) Landlord agrees to promptly give Notice to Franchisor (at the address set forth herein) in the event the Form Lease is terminated as the result of a default by Tenant or in the event Tenant fails to exercise any remaining options to extend the term of the Form Lease;
- (b) If Franchisor, any parent, subsidiary or affiliated company of Franchisor, or another BURNEY'S SWEETS & MORE franchisee elects to lease the Premises, such party shall notify Landlord in writing of its election to exercise this option to lease within thirty (30) days after (1) termination, non-renewal, or expiration of the Franchise Agreement; (2) Franchisor's receipt of Notice from Landlord that the Form Lease has been terminated; (3) receipt of Notice from Landlord that Tenant has failed to exercise an option to extend the term of the Form Lease; or (4) Notice from Landlord that the Form Lease and any rights to extension or renewal will expire;
- (c) If Franchisor, any parent, subsidiary or affiliated company of Franchisor, or another BURNEY'S SWEETS & MORE franchisee elects to lease the Premises under any of the conditions set forth in 5(i) to (v) above, Franchisor, any parent, subsidiary or affiliated company of Franchisor, or another BURNEY'S SWEETS & MORE franchisee shall sign and deliver to Landlord a lease containing all of the same terms and conditions (including rental
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Burneys Sweets More Franchise Disclosure Document, a 'Related Party' in the context of leasing a premises includes the Franchisor, any parent, subsidiary, or affiliated company of the Franchisor, or another Burneys Sweets More franchisee. This definition is relevant when considering the option to lease the premises under certain conditions.
Specifically, if the Franchise Agreement is terminated, not renewed, or expires, or if the current tenant fails to exercise an extension option or defaults on the lease, these 'Related Parties' have the option to lease the premises. This option is under the same terms and conditions as the original lease. The landlord must notify the franchisor of any lease termination or failure to extend the lease term, giving these related parties the opportunity to step in and take over the lease.
This clause ensures that Burneys Sweets More has a mechanism to maintain a presence in a location even if the original franchisee exits. For a prospective franchisee, this means that in certain adverse situations, Burneys Sweets More or its affiliates could become their landlord or take over their location. It also provides an opportunity for existing franchisees to potentially expand into new locations if the original franchisee leaves.