Must a Burneys Sweets More franchisee sign a release to renew their franchise agreement?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN AGREEMENT | SUMMARY |
|---|---|---|
| a. Length of the | Franchise Agreement § 2(a) | Initial term is 10 years. |
| franchise term | ||
| b. Renewal or extension of the term | Franchise Agreement §§ 2(b), 2(d) | Two 5-year renewal terms, provided you remain a franchisee in good standing. |
| c. Requirements for franchisee to renew or extend | Franchise Agreement §§ 2(b), 2(c) | You must be in good standing and exercise your option within a window of time. You must agree to the terms of the Franchise Agreement then being offered, make required upgrades to your Shop, secure a sufficiently long lease term, sign a release, and pay your renewal fee of $8,500. You must agree to the terms of the Franchise Agreement then being offered. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 41–46)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, a franchisee must sign a release to renew their franchise agreement. To renew the Burneys Sweets More franchise for two additional 5-year terms, a franchisee must be in good standing and exercise their option within a specific time frame.
In addition to being in good standing and exercising the option to renew within the specified window, the franchisee must also agree to the terms of the Franchise Agreement then being offered. This means the franchisee will need to adhere to the current standards and obligations outlined in the updated agreement. The franchisee is also responsible for making required upgrades to the shop to meet current brand standards, securing a lease term that is sufficiently long, and paying a renewal fee of $8,500.
Signing a release is a standard practice in franchising, intended to resolve any outstanding disputes or liabilities between the franchisor and franchisee before the renewal is finalized. This ensures a clean slate as the franchise relationship continues under the renewed agreement. The need to agree to the terms of the then-current Franchise Agreement is also typical, as franchisors update their agreements periodically to reflect changes in the market, legal requirements, or brand standards. Franchisees should carefully review the new agreement and consult with an attorney to understand any changes before signing.