What is the method of payment for signage 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 |
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 signage is "as incurred." This means that franchisees will pay for signage as the expenses arise. The estimated cost for signage ranges from $880 to $8,800, and payments are made to approved suppliers. The exact timing of these payments will vary depending on the specific contract the franchisee has with the supplier.
This "as incurred" payment method is fairly standard in franchising, particularly for items like signage, where costs can vary based on the size and location of the franchise. It allows franchisees to manage their cash flow by paying for these expenses as they become due, rather than in a lump sum upfront. However, franchisees should carefully review their contracts with signage suppliers to understand the payment terms and any potential financing options.
Prospective Burneys Sweets More franchisees should factor these signage costs and payment terms into their overall budget and financial planning. It's important to obtain quotes from multiple approved suppliers to ensure competitive pricing and favorable payment terms. Understanding the payment schedule will help franchisees manage their cash flow effectively during the initial setup phase of their Burneys Sweets More franchise.