How may the Burneys Sweets More franchisor opt to be reimbursed for legal expenses?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Legal Expenses. Franchisor may in certain situations incur legal expenses while providing assistance to Franchisee with respect to, without limitation, lease negotiations, or other legal compliance issues. Such assistance may be at the request of Franchisee or required by Franchisor and may be provided by Franchisor in-house or by outside counsel; provided however, that Franchisor shall have the sole discretion as to whether or not to provide legal assistance. In the event Franchisor does incur legal expenses on behalf of Franchisee, Franchisee shall reimburse Franchisor for such expenses immediately upon notice from Franchisor. Franchisor may, at its option, be reimbursed by EFT.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the franchisor may incur legal expenses while assisting a franchisee with lease negotiations or other legal compliance issues, either at the franchisee's request or as required by the franchisor. This assistance can be provided by in-house or outside counsel, at the franchisor's discretion.
If Burneys Sweets More does incur such legal expenses, the franchisee is obligated to reimburse the franchisor immediately upon notification of the expenses. The franchisor has the option to be reimbursed through Electronic Funds Transfer (EFT).
This means that as a Burneys Sweets More franchisee, you could be responsible for covering legal costs incurred by the franchisor on your behalf, for instance, during lease negotiations. It is important to clarify with Burneys Sweets More under what circumstances they would provide legal assistance, whether it is optional for the franchisee to accept this assistance, and to get an estimate of potential legal costs to avoid unexpected financial burdens.