factual

What is the 'Continued Operation After Expiration' fee for a Burneys Sweets More franchise?

Burneys_Sweets_More Franchise · 2025 FDD

Answer from 2025 FDD Document

Name of Fee1 Amount Due Date Remarks
Insurance Premium Reimbursement Actual out-of-pocket costs; varies according to plan and provider. Upon demand. If you do not purchase the required insurance, we may purchase it and you must reimburse us.
Enforcement Costs Our costs and expenses. As incurred. You must pay our costs of enforcement (including attorneys' fees and costs) if you do not comply with the Franchise Agreement.
Continued Operation After Expiration Greater of $1,000 per month or 150% of royalties per month. Monthly If we permit you continue to operate the Franchised Business on a month-to month basis after expiration of the Franchise Agreement, then you must pay to us, in addition to all Royalties and other fees due to us, a monthly fee equal to the greater of $1,000 or 150% of the royalties due for the same month for every month during the month-to-month operations, up to our then-current initial franchise fee.
Insufficient Funds $25 plus any fee charged us for uncollected funds. Upon notice Failure to have sufficient funds available for payments to us.
Failure to attend required training/convention Increase royalty by up to 1% for balance of calendar year. Upon notice of infraction. Will be collected by EFT. Additional royalty to compensate us for your failure to attend training/convention.
Quality Control Review Services Our costs and expenses. As incurred. If we implement a quality control program, you will pay your share of the costs and expenses of the program.
Name of Fee1 Amount Due Date Remarks
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Third Party Supplier Charges Your share of any charges billed to us on behalf of your business. As incurred. Sometimes it may be in the best interest of the BURNEY'S SWEETS & MORE brand for suppliers to bill us a system-wide charge for a product or service. We will then divide the invoice among our franchisees and charge you for your share.
Data Inspections and Reimbursement Our costs and expenses. Upon demand. If you repeatedly violate the required data privacy and security obligations under the Franchise Agreement, we reserve the right to charge you our costs and expenses to inspect your business. Additionally, you are responsible for our costs and expenses that arise from your non-compliance or a security breach caused by you or your personnel.
Goods and Services Current prices and fees. As incurred We may be the supplier of goods and services in the future and you may be required to pay us for those goods and services at the then-current rates.
Business Directory Listings Actual out-of-pocket costs. Upon demand. You will place and pay the cost of business listings in the directories and categories we specify. Alternatively, we can do so on your behalf and at your expense.

Source: Item 6 — OTHER FEES (FDD pages 11–17)

What This Means (2025 FDD)

According to Burneys Sweets More's 2025 Franchise Disclosure Document, if Burneys Sweets More permits a franchisee to continue operating their franchised business on a month-to-month basis after the expiration of the Franchise Agreement, the franchisee must pay a monthly fee. This fee is the greater of $1,000 or 150% of the royalties due for that same month. This fee is in addition to all other royalties and fees due to Burneys Sweets More.

This "Continued Operation After Expiration" fee is paid for every month the franchisee continues to operate under the Burneys Sweets More brand after the agreement's expiration. The fee continues until it reaches the then-current initial franchise fee.

For a prospective Burneys Sweets More franchisee, this means that if they continue to operate their franchise after the franchise agreement expires, they will face a significantly higher monthly fee. This fee structure incentivizes franchisees to either renew their franchise agreement or cease operations at the end of the term. It also protects Burneys Sweets More's interests by ensuring they are compensated for the continued use of their brand and system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.