What is the maximum number of renewal terms a Burneys Sweets More franchisee can be granted?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (iv) Notice of Default. Franchisee has not received more than three (3) notices of default during any consecutive twelve-month (12) month period during the Initial Term (or the first Renewal Term, if applicable).
- (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; Franchisor's predecessors, and affiliates and their respective shareholders, members, partners, officers, directors, managers, employees, agents, representatives, attorneys, accountants, guarantors, successors, and assigns, in both their corporate and individual capacit
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Burneys Sweets More Franchise Disclosure Document, the document does not explicitly state the maximum number of renewal terms a franchisee can be granted. However, it does outline the conditions required for each renewal. These conditions include the franchisee not receiving more than three notices of default within a 12-month period during the initial or first renewal term, executing a renewal agreement with potentially different terms, paying a renewal fee of $8,500, and releasing all claims against Burneys Sweets More.
For a prospective Burneys Sweets More franchisee, this means that the ability to renew the franchise agreement depends on meeting specific conditions at the time of renewal. The renewal agreement may contain terms that are substantially different from the original agreement, including changes to performance standards, fee structures, and territory protections. The franchisee must also pay a renewal fee of $8,500 for each renewal term.
Given the absence of a stated limit on the number of renewals, a franchisee who consistently meets the renewal conditions could potentially continue to renew their franchise agreement for an extended period. However, the changing terms in each new renewal agreement could significantly impact the franchisee's business operations and profitability over time. It is important to note that the franchisor reserves all rights not expressly granted to the franchisee, which could also influence the renewal process.
Therefore, a prospective franchisee should discuss with Burneys Sweets More the typical length and terms of renewal agreements granted to other franchisees, and under what circumstances a renewal might be denied, despite the franchisee meeting the minimum requirements. Understanding the potential long-term relationship and the factors influencing renewal decisions is crucial for making an informed investment.