What is the method of payment for equipment and smallwares 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 |
| Inventory2 | $8,800 | $27,500 | Vendor terms | Within 0 - 30 days of order | Approved vendors |
| Lease3 | $22,000 | $82,500 | Landlord terms | Monthly, depending on lease agreement | Landlord |
| Leasehold Improvements and Fixtures4 | $22,000 | $300,000 | Lump sum or (possibly) amortized by landlord | Varies depending on your contract with supplier | Supplier or Landlord |
| Furnishings | $1,100 | $20,000 | As incurred | Varies depending on your contract with supplier | Approved suppliers |
| Signage | $880 | $8,800 | As incurred | Varies depending on your contract with supplier | Approved suppliers |
| TYPE OF EXPENDITURE | AMOUNT LOW | HIGH | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS MADE |
| Equipment and Smallwares5 | $55,000 | $154,000 | As incurred | Varies depending on contract with supplier | Approved supplier |
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 method of payment for equipment and smallwares is "as incurred." Payment is due based on the contract with the approved supplier. The estimated initial investment for equipment and smallwares ranges from $55,000 to $154,000, and payment is made to an approved supplier.
This means that as a Burneys Sweets More franchisee, you will need to pay for equipment and smallwares as you incur the expenses, rather than in a lump sum upfront. The timing of these payments will depend on the specific agreements you have with the approved suppliers. It is important to note that the cost for equipment may vary and even exceed the estimates provided in the FDD if you choose to purchase equipment that exceeds the cost of the recommended purchases, or if vendors increase their prices.
Burneys Sweets More retains the right to require franchisees to purchase specific equipment from designated vendors in the future. Therefore, it is crucial to carefully review the contracts with suppliers to understand the payment terms and any potential price increases. Prospective franchisees should factor these potential variations into their financial planning and ensure they have sufficient capital to cover these costs as they arise.