When are payments for furnishings 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 |
| Invent |
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, payments for furnishings, which are estimated to range from $1,100 to $20,000, are due as incurred. This means that the timing of these payments will vary depending on the specific contract that the franchisee has with the approved suppliers.
This "as incurred" payment structure is fairly common in franchising, particularly for items like furnishings where the franchisee has some flexibility in choosing suppliers or specific items. However, it also means that the franchisee needs to carefully manage their budget and cash flow, as these expenses can arise at any time during the setup phase. It is important to note that the amount due will depend on the franchisee's contract with the supplier.
Prospective Burneys Sweets More franchisees should clarify payment terms with approved suppliers before committing to any purchases. Understanding these terms will help in accurately forecasting initial investment needs and managing cash flow during the pre-opening phase. It would be prudent to get clarity on potential refund policies from suppliers as well.