When are payments for leasehold improvements and fixtures 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 |
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 leasehold improvements and fixtures varies depending on the agreement a franchisee makes with their supplier or landlord. The FDD indicates that these payments, which can range from $22,000 to $300,000, are typically made in a lump sum. However, there is a possibility that these costs could be amortized by the landlord, meaning the franchisee would pay them off over time as part of the lease agreement.
This variability means that a prospective Burneys Sweets More franchisee needs to carefully negotiate the terms of payment with their chosen supplier or landlord. The method of payment will directly impact the initial financial outlay required to start the franchise. A lump sum payment will require a significant upfront investment, while amortizing the costs could ease the initial financial burden but increase overall costs due to interest or fees.
It is important for franchisees to understand the refund policies of their vendors, as the amounts paid for leasehold improvements are typically non-refundable. Therefore, before engaging a vendor for renovation or remodeling, a franchisee should inquire about their refund policy. This due diligence can help mitigate potential financial risks associated with these significant upfront costs. Consulting with a business advisor or accountant is recommended to fully understand the financial implications and to negotiate favorable terms with suppliers and landlords.