Does a Guarantor for Burneys Sweets More have to receive notice of modifications to the Agreement?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
e).
- (v) Renewal Agreement. Franchisee, its Owners, and its guarantors execute and deliver to Franchisor, within thirty (30) days after delivery to Franchisee, the form of BURNEY'S SWEETS & MORE franchise agreement and ancillary agreements, which agreements shall supersede this which agreements shall supersede this Agreement in all respects, and the terms, conditions, obligations, rights, and other provisions that are substantially and materially different from those spelled out in this Agreement (including, for example, different performance standards, fee structures, increased fees and/or reduced territory protections) ("Renewal Agreement").
- (vi) Renewal Fee. Franchisee has paid to Franchisor a renewal fee of Eight Thousand Five Hundred Dollars ($8,500), which fee shall be due in immediately available funds upon the execution of the Renewal Agreement. For the avoidance of doubt, Franchisee shall pay the aforementioned renewal fee prior to each Renewal Term.
- (vii) Release. Franchisee; Owners; guarantors of the Franchisee; for themselves and on behalf of their respective predecessors, affiliates, shareholders, members, partners, officers, directors, managers, employees, agents, representatives, attorneys, accountants, personal representatives, heirs, executors, administrators, successors, and assigns (collectively, "Releasors") execute and deliver to Franchisor a general release, in the form prescribed by Franchisor, releasing, to the fullest extent permitted by law, all claims that Releasors may have against Franchisor;
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 outlines specific instances where guarantors are involved, particularly in the context of renewal and releases. However, the document does not explicitly state whether a guarantor receives direct notice of modifications to the franchise agreement.
While the FDD mentions that guarantors must execute and deliver the renewal agreement and ancillary agreements, along with the franchisee and owners, within 30 days of delivery to the franchisee, it does not specify that the guarantor will receive direct notification of modifications. The guarantor is also included in the release of claims against the franchisor during the renewal process. This implies the guarantor's obligations and liabilities are considered during renewals, but the FDD doesn't clarify if they are directly informed of changes.
Therefore, a prospective Burneys Sweets More franchisee should clarify with the franchisor whether guarantors receive direct notification of any modifications to the franchise agreement. Understanding the guarantor's rights and responsibilities regarding agreement modifications is crucial for all parties involved.