factual

When are 'Enforcement Costs' due for a Burneys Sweets More franchise?

Burneys_Sweets_More Franchise · 2025 FDD

Answer from 2025 FDD Document

Name of Fee1 Amount Due Date Remarks
Insurance Premium Reimbursement Actual out-of-pocket costs; varies according to plan and provider. Upon demand. If you do not purchase the required insurance, we may purchase it and you must reimburse us.
Enforcement Costs Our costs and expenses. As incurred. You must pay our costs of enforcement (including attorneys' fees and costs) if you do not comply with the Franchise Agreement.
Continued Operation After Expiration Greater of $1,000 per month or 150% of royalties per month. Monthly If we permit you continue to operate the Franchised Business on a month-to month basis after expiration of the Franchise Agreement, then you must pay to us, in addition to all Royalties and other fees due to us, a monthly fee equal to the greater of $1,000 or 150% of the royalties due for the same month for every month during the month-to-month operations, up to our then-current initial franchise fee.
Insufficient Funds $25 plus any fee charged us for uncollected funds. Upon notice Failure to have sufficient funds available for payments to us.
Failure to attend required training/convention Increase royalty by up to 1% for balance of calendar year. Upon notice of infraction. Will be collected by EFT. Additional royalty to compensate us for your failure to attend training/convention.
Quality Control Review Services Our costs and expenses. As incurred. If we implement a quality control program, you will pay your share of the costs and expenses of the program.
Name of Fee1 Amount Due Date Remarks
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Third Party Supplier Charges Your share of any charges billed to us on behalf of your business. As incurred. Sometimes it may be in the best interest of the BURNEY'S SWEETS & MORE brand for suppliers to bill us a system-wide charge for a product or service. We will then divide the invoice among our franchisees and charge you for your share.
Data Inspections and Reimbursement Our costs and expenses. Upon demand. If you repeatedly violate the required data privacy and security obligations under the Franchise Agreement, we reserve the right to charge you our costs and expenses to inspect your business. Additionally, you are responsible for our costs and expenses that arise from your non-compliance or a security breach caused by you or your personnel.
Goods and Services Current prices and fees. As incurred We may be the supplier of goods and services in the future and you may be required to pay us for those goods and services at the then-current rates.
Business Directory Listings Actual out-of-pocket costs. Upon demand. You will place and pay the cost of business listings in the directories and categories we specify. Alternatively, we can do so on your behalf and at your expense.

Source: Item 6 — OTHER FEES (FDD pages 11–17)

What This Means (2025 FDD)

According to Burneys Sweets More's 2025 Franchise Disclosure Document, Enforcement Costs are due 'as incurred.' These costs cover Burneys Sweets More's expenses related to enforcing the Franchise Agreement, including attorney's fees, if a franchisee fails to comply with the agreement. This means that if a Burneys Sweets More franchisee violates the Franchise Agreement, they will be responsible for covering the costs Burneys Sweets More incurs to rectify the situation.

For a prospective Burneys Sweets More franchisee, this highlights the importance of adhering to the Franchise Agreement. Failure to comply can lead to unexpected expenses in the form of enforcement costs. These costs are not a fixed amount but rather depend on the specific actions Burneys Sweets More needs to take to ensure compliance.

It is important to note that these enforcement costs are in addition to any other penalties or remedies Burneys Sweets More might pursue for a breach of the Franchise Agreement. Therefore, understanding and adhering to the terms of the Franchise Agreement is crucial for managing potential financial risks as a Burneys Sweets More franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.