What must a Burneys Sweets More franchisee do if a lien or judgment is filed against them?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Pay All Sums Due.
Franchisee shall promptly pay all sums owed to Franchisor upon request.
Such sums shall include all damages, costs, losses, and expenses, including reasonable attorneys' fees, incurred by Franchisor as a result of the default and the termination.
Any outstanding obligations to Franchisor shall give rise to and remain, until paid in full, a lien in favor of Franchisor against any and all of the personal property, furnishings, equipment, signs, fixtures and inventory owned by Franchisee located on the Premises on the date this Agreement is terminated, expires, or does not renew.
Within fifteen (15) days of the date of expiration, termination, or non-renewal of this Agreement, Franchisee shall pay in full all of the creditors and suppliers to the Franchised Business.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Burneys Sweets More franchise agreement stipulates that any outstanding obligations to Burneys Sweets More will result in a lien in favor of Burneys Sweets More against the franchisee's personal property, furnishings, equipment, signs, fixtures, and inventory located at the premises. This lien remains in effect until all debts are paid in full.
Furthermore, within 15 days of the termination, expiration, or non-renewal of the Burneys Sweets More agreement, the franchisee is obligated to pay all creditors and suppliers associated with the franchised business. This requirement ensures that all financial responsibilities are settled promptly upon the conclusion of the franchise relationship.
In practical terms, a prospective Burneys Sweets More franchisee should be aware that any failure to meet financial obligations to Burneys Sweets More can lead to a secured claim against their business assets. Additionally, they must be prepared to settle all outstanding debts with creditors and suppliers within a short timeframe if the franchise agreement ends. This highlights the importance of maintaining sound financial management and adhering to the payment terms outlined in the franchise agreement to avoid potential legal and financial repercussions.