Can Burneys Sweets More purchase only a portion of the assets of the Burneys Sweets More franchised business?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may purchase all or only a portion of the assets of the Franchised Business and may exclude from its purchase any assets or cash, for any reason, in Franchisor's sole discretion.
Franchisor shall have the right to set off and apply any amounts due to Franchisee pursuant to this subsection against any and all other amounts which may be due from Franchisee to Franchisor.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More Franchise Disclosure Document, Burneys Sweets More has the option to purchase all or only a portion of the assets of a franchised business. This gives Burneys Sweets More considerable flexibility in how they might handle the acquisition of a franchise, potentially allowing them to acquire only the most valuable or relevant assets. They can also exclude specific assets or cash from the purchase for any reason, according to their discretion.
For a franchisee, this means that if Burneys Sweets More decides to purchase the franchise, they are not obligated to buy everything. This could impact the valuation of the business during a sale, as Burneys Sweets More might not be interested in certain assets, leading to a lower overall purchase price. It is important to note that Burneys Sweets More also has the right to offset any amounts owed to the franchisee from the purchase against any debts the franchisee owes to Burneys Sweets More.
This clause provides Burneys Sweets More with significant leverage in any potential acquisition scenario. Franchisees should carefully consider this when evaluating the potential resale value of their Burneys Sweets More franchise and understand that the final sale might not include all assets, and the price could be affected accordingly.