What is the method of payment for leasehold improvements and fixtures 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 |
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 leasehold improvements and fixtures can be either a lump sum or potentially amortized by the landlord. The amount due varies depending on the contract with the supplier or landlord.
The estimated initial investment for leasehold improvements and fixtures ranges from $22,000 to $300,000. This significant range reflects the variability in costs associated with different locations and the condition of the space. The lower end of the estimate assumes a space of approximately 1,500 square feet that is a warm vanilla shell with a commercial hood already installed located in a small, rural town. The higher estimate assumes renting a space of approximately 2,200 square feet that is a new, dark shell space that has never been built out, does not have an adequate commercial hood already installed, and/or is located in a more suburban or urban area.
Prospective Burneys Sweets More franchisees should carefully consider these costs and negotiate payment terms with their suppliers or landlords. The FDD advises franchisees to ask the vendor they hire to renovate or remodel the facility about its refund policy before patronizing the vendor, as the amounts paid for leasehold improvements are typically non-refundable. Understanding the terms of the lease and any potential amortization of these costs by the landlord is crucial for managing the initial investment.