What is the dependency between lease execution and construction commencement for a Burneys Sweets More franchise?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) Owned Premises. If Franchisee intends to own the Premises, Franchisee shall obtain acceptance of the Premises from Franchisor and furnish Franchisor proof of ownership prior to the date Franchisee commences any construction, build-out or remodeling of the Premises. In the event that Franchisee proposes to lease the Premises from any Owner, affiliate, shareholder, member, manager, director, guarantor, or officer of Franchisee, or from any person or entity related to or affiliated with Franchisee or one or more of Franchisee's Owners, affiliates, shareholders, members, managers, directors, guarantors, or officers (the "Related Party"), Franchisor may require the Related Party to
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, if a franchisee intends to own the premises, they must furnish Burneys Sweets More with proof of ownership before starting any construction, build-out, or remodeling. However, if the franchisee intends to lease the premises, they must obtain Burneys Sweets More's acceptance of the lease.
Specifically, the franchisee needs to submit executed copies of all leases to Burneys Sweets More immediately after execution and at any other times Burneys Sweets More requests. The lease term, including all renewal options, must equal or exceed the Initial Term and any Renewal Term of the franchise agreement. Additionally, all leases must include an addendum in the form of Attachment 2 or contain substantially similar terms approved in writing by Burneys Sweets More.
In summary, for franchisees who lease their premises, lease execution and Burneys Sweets More's acceptance of the lease are conditions precedent to commencing any construction or remodeling activities. For franchisees who own their premises, providing proof of ownership to Burneys Sweets More is required before starting construction.