What is the Burneys Sweets More franchisee's obligation to pay bills and accounts?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (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.
- (f) Pay All Subsequent Amounts. Franchisee shall promptly pay to Franchisor all damages, costs and expenses including reasonable attorneys' fees, incurred by Franchisor subsequent to the termination, expiration, or non-renewal of this Agreement in obtaining injunctive or other relief for the enforcement of any term, covenant or provision of this Agreement.
- (g) Cease use of Marks. Franchisee shall immediately and permanently cease to use, in any manner whatsoever, the Mark "BURNEY'S SWEETS & MORE" and all other Marks and distinctive forms, slogans, signs, symbols, logos and devices associated with the BURNEY'S SWEETS & MORE Chain and System.
- (h) Cooperate with Franchisor's Assumption Rights. Franchisor shall have the option, to be exercised within thirty (30) days of termination, non-renewal, or expiration of this Agreement, to assume Franchisee's assumed name or equivalent registration and business licenses, telephone numbers, telephone directory listings and advertisements (whether in print or part of an Internet directory), and e-mail addresses and/or Internet domain names which contain the Mark of Franchisor or its affiliates, and Franchisee shall sign all documents necessary to permit Franchisor to assume Franchisee's rights in such items. If Franchisor elects not to exercise this option, Franchisee shall take all action necessary to cancel each of the items listed above and shall furnish Franchisor with evidence satisfactory to prove its compliance within fifteen (15) days after receiving notice of Franchisor's termination, expiration, or non-renewal of this Agreement and the expiration of the option granted herein. In the event Franchisee fails to timely do so, Franchisor shall have the right, for which purpose Franchisee hereby appoints Franchisor as its attorney-infact, to obtain such cancellation on Franchisee's behalf and at Franchisee's expense.
- (i) Comply with Covenants.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More FDD, franchisees have several obligations regarding payments. Franchisees must promptly pay all sums owed to Burneys Sweets More upon request, including damages, costs, losses, and expenses, such as reasonable attorneys' fees, resulting from default and termination. Any outstanding obligations create a lien in favor of Burneys Sweets More against the franchisee's personal property at the premises until fully paid. Franchisees are also responsible for paying all creditors and suppliers of the franchised business within fifteen days of the agreement's expiration, termination, or non-renewal.
Burneys Sweets More also has the right to have suppliers bill it or an affiliate for goods and services that benefit the Burneys Sweets More network, and the franchisee agrees to pay their pro rata share of these costs and fees. On each due date, franchisees must pay the fees outlined in the agreement, along with any other amounts owed to Burneys Sweets More under the agreement or any other agreement between the franchisee and Burneys Sweets More. Burneys Sweets More may transfer these amounts from the franchisee's bank operating account, and a $25 administrative fee may be assessed if a transfer is refused, along with reimbursement for any fees the bank charges for uncollected deposit funds.
If a franchisee has not reported gross sales, Burneys Sweets More can transfer an amount equal to the average of the preceding three months' gross sales from the franchisee's account. Additionally, if Burneys Sweets More determines that a franchisee has underreported gross sales or underpaid royalties or other amounts, it can initiate an immediate transfer from the account, including interest. Any overpayment will be credited to the account. Burneys Sweets More also has the right to obtain gross sales directly from the franchisee's point-of-sale system instead of relying on royalty reports.