When are payments for equipment and smallwares due 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 payment schedule for equipment and smallwares is "as incurred" and the specific due date "varies depending on contract with supplier." This means that franchisees will need to pay for these items as they are purchased, but the exact timing will depend on the agreements they make with the approved suppliers. The estimated initial investment for equipment and smallwares ranges from $55,000 to $154,000.
This variability highlights the importance of carefully negotiating terms with suppliers. Franchisees should clarify payment schedules, potential discounts, and any financing options available. Since Burneys Sweets More reserves the right to require franchisees to purchase specific equipment from designated vendors in the future, understanding these vendor relationships is crucial.
Prospective franchisees should also be aware that these costs may vary and even exceed the estimates provided in the FDD if they choose to purchase equipment that exceeds the cost of the recommended purchases, or if vendors increase their prices. Therefore, it is prudent to factor in potential cost overruns when budgeting for the initial investment. Thorough due diligence and communication with both the franchisor and approved suppliers are essential to managing these expenses effectively.