What is the dependency between Burneys Sweets More's right of first refusal and the approval of transfers?

According to the 2025 Burneys Sweets More FDD, the franchisor's right of first refusal directly impacts the approval of franchise transfers. Specifically, Burneys Sweets More has the initial right to purchase the franchisee's interest under the same terms and conditions as any proposed transfer. Only if Burneys Sweets More chooses not to exercise this right of first refusal does the franchisor then have the option to approve or disapprove the proposed transfer.

If Burneys Sweets More decides not to exercise its right of first refusal, it can then either approve or disapprove the transfer. However, the FDD stipulates that Burneys Sweets More's consent to a transfer cannot be unreasonably withheld, provided certain conditions are met. These conditions likely involve the franchisee being in compliance with the franchise agreement and the proposed transferee meeting certain qualifications.

In practical terms, a Burneys Sweets More franchisee looking to sell their business must first offer the company the opportunity to buy it on the same terms offered by a third party. Only if Burneys Sweets More declines this opportunity can the franchisee proceed with seeking approval for the transfer to the third party. This process ensures that Burneys Sweets More maintains control over who enters its franchise system and has the option to acquire existing locations before they are sold to outside parties.