To whom is the Initial Franchise Fee paid for a Burneys Sweets More franchise?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS MADE | |
|---|---|---|---|---|---|
| LOW | HIGH | ||||
| PRE-OPENING COSTS1 | |||||
| Initial Franchise Fee | $20,000 | $20,000 | Lump sum | Due on signing Franchise Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 17–20)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the initial franchise fee, which ranges from $20,000 to $20,000, is paid to "Us," meaning Burneys Sweets More. This payment is due in a lump sum when the Franchise Agreement is signed. Note 1 in Item 7 also states that all fees described in Item 7 are payable to Burneys Sweets More and are non-refundable.
This means that a prospective Burneys Sweets More franchisee must pay the initial franchise fee directly to Burneys Sweets More upon signing the franchise agreement. This fee grants the franchisee the right to operate a Burneys Sweets More shop. It's important to note that this fee is non-refundable, regardless of whether the shop eventually opens or becomes successful.
In the franchise industry, the initial franchise fee is typically paid to the franchisor as compensation for granting the franchise rights and providing initial training and support. The fact that the fee is non-refundable is also a common practice, as it covers the franchisor's expenses in evaluating and onboarding the franchisee. Therefore, it is important for a prospective franchisee to carefully consider their decision before signing the franchise agreement and paying the initial fee to Burneys Sweets More.