What is the method of payment for lease payments 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 |
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, lease payments are made based on landlord terms and are typically due monthly, depending on the specific lease agreement. The estimated initial investment for lease payments ranges from $22,000 to $82,500. These payments are made directly to the landlord.
It's important for prospective franchisees to carefully review the lease agreement and understand the landlord's specific payment terms, including due dates and any potential penalties for late payments. Franchisees should also inquire about the landlord's refund policy regarding rental payments or other fees, as these are typically non-refundable.
Burneys Sweets More estimates that franchisees should budget for these lease costs as part of their initial investment. However, the actual cost can vary significantly based on factors such as the location of the facility, its square footage, the cost per square foot, renovation costs, and any required maintenance fees. Therefore, thorough due diligence and professional advice are crucial when negotiating a lease agreement.
Prospective Burneys Sweets More franchisees should factor in potential rent payments beginning before the shop opens, which could increase initial costs. The FDD advises consulting with a business advisor or accountant to get a more accurate estimate of the amount needed in reserve, considering local market conditions and other variables related to the shop's location.