What financial statements is the seller required to provide to Burneys Sweets More before closing?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
I have received a disclosure document dated April 30, 2025 that included the following: Exhibit A – BURNEY'S SWEETS & MORE Franchise Agreement, with Attachment 1 (Franchise Rider), Attachment 2 (Lease Rider), Attachment 3 (Internet, Social Media, and Telephone Assignment), Attachment 4 (Guaranty), Attachment 5(a) (Noncompetition Agreement), and Attachment 5(b) (Nondisclosure and Non-Solicitation Agreement), Exhibit B-1 – Shop Directory/Listing of Current Franchisees, Exhibit B-2 – Listing of Certain Past Franchisees Exhibit C – Financial Statements, Exhibit D – State Specific Information, Exhibit E – Federal and State Regulators and Agents for Service of Process, Exhibit F –Sample General Release Agreement, Exhibit G – ACH/EFT Transfer Agreement, Exhibit H – First Addendum to Renewal Franchise Agreement, Exhibit I – Agreement and Conditional Consent to Transfer, Exhibit J – Small Business Administration Addendum, Exhibit K – Form of Franchise Compliance Certification, Exhibit L – Receipt
Source: Item 23 — RECEIPT (FDD pages 50–199)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More FDD, Exhibit C includes the financial statements. The receipt included in the disclosure document, which is dated April 30, 2025, lists several exhibits, including Exhibit C, which pertains to financial statements. This suggests that financial statements are a standard part of the information provided to potential franchisees.
This inclusion of financial statements in the disclosure document is a common practice in franchising, allowing prospective franchisees to assess the financial health and performance of the franchisor. By reviewing these statements, a potential Burneys Sweets More franchisee can gain insights into the franchisor's revenue, expenses, assets, and liabilities. This information can be crucial in making an informed decision about investing in the franchise.
It is important for a prospective franchisee to carefully examine these financial statements and, if necessary, seek professional advice from an accountant or financial advisor. Understanding the franchisor's financial position can help the franchisee evaluate the potential risks and rewards associated with the franchise opportunity. The financial statements included are audited balance sheets as of December 31, 2023 and 2022, statements of income, retained earnings, and cash flows for those years, and related notes.