When is the initial franchise fee due and payable for a Burneys Sweets More franchise?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
3. Franchise Fees and Payments.
- (a) Initial Franchise Fee, Royalties and Other Payments.
In consideration of Franchisor's execution of this Agreement and the services that Franchisor will perform, Franchisee agrees to pay to Franchisor the following fees in such manner as Franchisor may from time to time designate and on the dates specified by Franchisor (each a "Due Date"):
- (i) Initial Franchise Fee.
An initial franchise fee as set forth on Attachment 1 attached hereto.
Franchisee acknowledges that the initial grant of the License constitutes the sole consideration for the payment of the Initial Franchise Fee which shall be earned upon execution of this Agreement and shall not be refundable under any circumstances.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More Franchise Disclosure Document, the initial franchise fee is due upon the execution of the Franchise Agreement. Burneys Sweets More states that the initial grant of the license is the sole consideration for the payment of the initial franchise fee.
Burneys Sweets More emphasizes that this initial franchise fee is earned upon the execution of the agreement. This means that once the agreement is signed, Burneys Sweets More is entitled to the fee, and it becomes non-refundable under any circumstances.
This is a common practice in franchising, as the initial fee compensates the franchisor for the initial costs and efforts in evaluating the franchisee, providing training, and granting the franchise license. Prospective Burneys Sweets More franchisees should be aware of this non-refundable clause and carefully consider their decision before signing the Franchise Agreement.