What is the dependency between the payment of amounts due and the transfer of a Burneys Sweets More franchise?
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.
Source: Item 23 — RECEIPT (FDD pages 50–199)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the transfer of a franchise is contingent upon the seller paying all outstanding amounts to the franchisor. Specifically, the franchisor's consent to the transfer and the release of the seller from obligations under the Seller Franchise Agreement are conditional. These conditions must be met on or before the closing date of the transfer.
To proceed with the transfer, the seller must ensure that all due amounts, including but not limited to past due royalty and advertising fees, are paid to Burneys Sweets More through the date of closing. Additionally, the seller is required to pay a transfer fee as stipulated in the Seller Franchise Agreement. The specific amounts for past due fees and the transfer fee are not provided in this excerpt but would be detailed in the agreement.
This conditionality ensures that Burneys Sweets More receives all outstanding payments before a franchise changes hands. It protects the franchisor's financial interests and maintains the integrity of the franchise system. A prospective buyer should confirm that all financial obligations are cleared by the seller before finalizing the transfer to avoid potential complications or liabilities.