What is the dependency between the Buyer Franchise Agreement and the Transfer 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 the 2025 Burneys Sweets More FDD, the transfer of a franchise is dependent on the Buyer Franchise Agreement. Specifically, the seller's franchise agreement will terminate as of the closing date of the transfer, and the operation of the franchised location will then be governed by the Buyer Franchise Agreement.
Prior to the transfer's closing, the buyer or their representative must complete the initial training program outlined in the Buyer Franchise Agreement. The buyer must also provide evidence that they have the right to possess the premises, such as a lease assignment. Burneys Sweets More states that they have satisfied all obligations regarding site selection and development assistance under the Buyer Franchise Agreement.
Furthermore, the buyer and seller must obtain written consent from Burneys Sweets More before changing possession of the franchised location. Both parties are also required to execute any additional documents necessary to complete the transfer, as outlined in the Purchase Agreement, the Seller Franchise Agreement, and the Buyer Franchise Agreement. These conditions ensure that the new franchisee is adequately trained and prepared to operate the Burneys Sweets More franchise according to the brand's standards.