What happens to the Burneys Sweets More transfer fee if the transfer is not approved?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
- (vii) Transfer Fee.
Franchisee or the Owner, as applicable, pays to Franchisor a transfer fee equal to fifty percent (50%) of the then-current franchise fee, which fee must be deposited with Franchisor on a non-refundable basis upon Franchisee's notification to Franchisor of the proposed transfer and prior to Franchisor's undertaking any review, drafting of documents, training or other activities.
If Franchisor does not approve the transfer, Franchisee's transfer fee will be returned to Franchisee minus Franchisor's expenses incurred (including legal fees) for review and consideration of the transfer.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the transfer fee is addressed in the conditions for transferring a franchise. The franchisee must pay Burneys Sweets More a transfer fee equal to 50% of the then-current franchise fee. This fee must be deposited with Burneys Sweets More on a non-refundable basis when the franchisee notifies Burneys Sweets More of the proposed transfer. This deposit is required before Burneys Sweets More undertakes any review, document drafting, training, or other related activities.
However, if Burneys Sweets More does not approve the transfer, the franchisee will receive a refund of the transfer fee. This refund is not the entire amount, as Burneys Sweets More will deduct any expenses it incurred while reviewing and considering the transfer. These expenses can include legal fees, which could reduce the amount returned to the franchisee.
This policy means that a Burneys Sweets More franchisee seeking to transfer their franchise bears the risk of losing a portion of the transfer fee even if the transfer is ultimately not approved. The expenses incurred by Burneys Sweets More for the review process will be deducted from the refund, so it is important for franchisees to ensure that potential transferees meet the necessary qualifications before initiating the transfer process and paying the fee.