What is the dependency between the consent and release and the compliance with terms and conditions for Burneys Sweets More?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
ent 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 Burneys Sweets More's 2025 Franchise Disclosure Document, the franchisor's consent to a transfer of ownership and the release of the seller from obligations and guaranties are contingent upon compliance with specific terms and conditions. This means that a seller cannot be released from their obligations unless these conditions are met.
The conditions include the termination of the Seller Franchise Agreement, which will then be governed by the Buyer Franchise Agreement. The seller must also pay all outstanding amounts owed to Burneys Sweets More through the closing date, including any past due royalty and advertising fees. Additionally, the seller is responsible for paying a transfer fee as stipulated in the Seller Franchise Agreement.
Furthermore, the seller needs to provide all required monthly financial statements for the Franchised Location up to the closing date. The buyer, or their designated representative, must also satisfactorily complete the initial training program as outlined in the Buyer Franchise Agreement before the closing can occur. These stipulations ensure that Burneys Sweets More maintains financial and operational integrity during the transfer process and that the new franchisee is adequately prepared to operate the franchise.