What is the formula for calculating Transfer Damages owed to Burneys Sweets More?

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Accepted Answer

| Name of Fee1                  | Amount                                                                                                                                                                 | Due Date                         | Remarks                                                                                                                                                                                                                                                                           |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Refurbishing Reimbursement | Our costs and expenses plus 15%.                                                                                                                                    | Upon demand                      | If we must undertake any refurbishing work on your behalf, you will pay us our costs and expenses and an administrative fee of 15% for the total aggregate amount incurred by us. Additional interest will apply to any late payment of reimbursement. |
| Customer Complaint Fee     | Our costs and expenses.                                                                                                                                             | Upon demand.                     | If a customer complains to us and you fail to satisfactorily remedy the complaint, you will pay us our costs to respond to the complaint.                                                                                                                          |
| Default Damages               | Damages, costs, losses, and expenses,                                                                                                                               | As incurred.                     | You must promptly reimburse us for any damages, costs, losses, and expenses, including reasonable attorneys' fees, we incur as a result of any default under the Franchise Agreement.                                                                        |
| Liquidated damages            | An amount equal to royalty fees and marketing fund contributions for the lesser of (i) 2 years or (ii) the remaining weeks of the franchise term. | On demand                        | Payable if we terminate your franchise agreement because of your default, or if you terminate the franchise agreement without the right to do so.                                                                                                                  |
| Transfer Damages              | 15% of the price paid by the transferee or \$25,000, whichever is greater.                                                                                 | Within 15 days of our demand. | Due only if you breach your transfer obligations to us. These are liquidated damages and not a penalty.                                                                                                                                                                  |

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

What is the formula for calculating Transfer Damages owed to Burneys Sweets More?

Answer from 2025 FDD Document

What This Means (2025 FDD)

Name of Fee1	Amount	Due Date	Remarks
Refurbishing Reimbursement	Our costs and expenses plus 15%.	Upon demand	If we must undertake any refurbishing work on your behalf, you will pay us our costs and expenses and an administrative fee of 15% for the total aggregate amount incurred by us. Additional interest will apply to any late payment of reimbursement.
Customer Complaint Fee	Our costs and expenses.	Upon demand.	If a customer complains to us and you fail to satisfactorily remedy the complaint, you will pay us our costs to respond to the complaint.
Default Damages	Damages, costs, losses, and expenses,	As incurred.	You must promptly reimburse us for any damages, costs, losses, and expenses, including reasonable attorneys' fees, we incur as a result of any default under the Franchise Agreement.
Liquidated damages	An amount equal to royalty fees and marketing fund contributions for the lesser of (i) 2 years or (ii) the remaining weeks of the franchise term.	On demand	Payable if we terminate your franchise agreement because of your default, or if you terminate the franchise agreement without the right to do so.
Transfer Damages	15% of the price paid by the transferee or $25,000, whichever is greater.	Within 15 days of our demand.	Due only if you breach your transfer obligations to us. These are liquidated damages and not a penalty.