conditional

Does the Burneys Sweets More franchisor have to approve the lease for a renewing franchisee?

Burneys_Sweets_More Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Option to Lease. Landlord hereby agrees that, (i) in the event of the termination, non-renewal, or expiration of the Franchise Agreement by and between Tenant and Franchisor; (ii) the termination of the Form Lease for any cause whatsoever including, without limitation, a default by Tenant under the Form Lease after expiration of any applicable notice and cure periods; (iii) in the event of Tenant's failure to exercise any extension option contained in the Form Lease, (iv) upon the expiration of the Form Lease and any rights to extension or renewal; or (v) as otherwise permitted under the Franchise Agreement, Franchisor, any parent, subsidiary or affiliated company of Franchisor, or another BURNEY'S SWEETS & MORE franchisee shall have the option to lease the Premises pursuant to the same terms and conditions as are contained in the Form Lease, in accordance with the following:
  • (a) Landlord agrees to promptly give Notice to Franchisor (at the address set forth herein) in the event the Form Lease is terminated as the result of a default by Tenant or in the event Tenant fails to exercise any remaining options to extend the term of the Form Lease;
  • (b) If Franchisor, any parent, subsidiary or affiliated company of Franchisor, or another BURNEY'S SWEETS & MORE franchisee elects to lease the Premises, such party shall notify Landlord in writing of its election to exercise this option to lease within thirty (30) days after (1) termination, non-renewal, or expiration of the Franchise Agreement; (2) Franchisor's receipt of Notice from Landlord that the Form Lease has been terminated; (3) receipt of Notice from Landlord that Tenant has failed to exercise an option to extend the term of the Form Lease; or (4) Notice from Landlord that the Form Lease and any rights to extension or renewal will expire;
  • (c) If Franchisor, any parent, subsidiary or affiliated company of Franchisor, or another BURNEY'S SWEETS & MORE franchisee elects to lease the Premises under any of the conditions set forth in 5(i) to (v) above, Franchisor, any parent, subsidiary or affiliated company of Franchisor, or another BURNEY'S SWEETS & MORE franchisee shall sign and deliver to Landlord a lease containing all of the same terms and conditions (including rental

rates, terms and remaining options to extend the term of the Form Lease) as are contained in the Form Lease; provided, however, that such party's leasehold interest shall not be subject to any defaults or claims that may exist between Landlord and Tenant and any such lease shall permit Franchisor or any parent, subsidiary or affiliated company of Franchisor, or another BURNEY'S SWEETS & MORE franchisee to assign the lease or sublease the Premises to a franchisee of Franchisor for use as a BURNEY'S SWEETS & MORE franchised location; and

  • (d) Nothing contained herein shall affect Landlord's right to recover any and all amounts due under the Form Lease from Tenant or to exercise any right of Landlord against Tenant as provided under the Form Lease.

De-identification.

Landlord and Tenant hereby acknowledge that in the event the Franchise Agreement expires or is terminated, Tenant is obligated under the Franchise Agreement to take certain steps to de-identify the location as a BURNEY'S SWEETS & MORE franchise location operated by Tenant.

Landlord agrees to cooperate fully with Franchisor in enforcing such provisions of the Franchise Agreement against Tenant, including allowing Franchisor, its employees and agents to enter and remove signs, decor and materials bearing or displaying any marks, designs or logos of Franchisor; provided, however, that Landlord shall not be required to bear any expense thereof.

Tenant agrees that if Tenant fails to de-identify the Premises promptly upon termination, expiration, or non-renewal as required under the Franchise Agreement, Franchisor may cause all required de-identification to be completed at Tenant's sole cost and expense.

Landlord hereby agrees that Franchisor, its employees, and agents have the right to enter into and temporarily occupy the Premises for all purposes permitted under the Franchise Agreement or to otherwise enforce the Franchise Agreement.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

The 2025 Burneys Sweets More Franchise Disclosure Document (FDD) does not explicitly state whether the franchisor's approval is required for a lease renewal. However, the FDD does address the franchisor's rights and options regarding the lease in certain situations. Specifically, Burneys Sweets More retains the option to lease the premises under the same terms and conditions as the original lease if the franchise agreement is terminated, not renewed, or expires. This also applies if the franchisee fails to exercise any extension options or defaults on the lease.

Burneys Sweets More, its parent company, subsidiaries, affiliates, or another franchisee can exercise this option. To do so, they must notify the landlord in writing within thirty days of the triggering event (termination/non-renewal of the franchise agreement, notice of lease termination, or failure to extend the lease). If Burneys Sweets More or its designee elects to lease the premises, they must sign a lease with the same terms and conditions as the original lease, including rental rates, terms, and remaining extension options. This new leasehold interest will not be subject to any defaults or claims between the landlord and the original franchisee, and Burneys Sweets More can assign or sublease the premises to another franchisee.

In the event the Franchise Agreement expires or is terminated, the franchisee is obligated to de-identify the location as a Burneys Sweets & More franchise. The landlord is expected to cooperate with Burneys Sweets More in enforcing this provision, including allowing them to remove signage and materials bearing Burneys Sweets More's branding. If the franchisee fails to do so, Burneys Sweets More can complete the de-identification at the franchisee's expense. A prospective franchisee should clarify with Burneys Sweets More the specific process and requirements for lease renewal and whether franchisor approval is needed.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.