What is the purpose of the transfer damages provision in the Burneys Sweets More franchise agreement?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Pay All Sums Due.
Franchisee shall promptly pay all sums owed to Franchisor upon request.
Such sums shall include all damages, costs, losses, and expenses, including reasonable attorneys' fees, incurred by Franchisor as a result of the default and the termination.
Any outstanding obligations to Franchisor shall give rise to and remain, until paid in full, a lien in favor of Franchisor against any and all of the personal property, furnishings, equipment, signs, fixtures and inventory owned by Franchisee located on the Premises on the date this Agreement is terminated, expires, or does not renew.
Within fifteen (15) days of the date of expiration, termination, or non-renewal of this Agreement, Franchisee shall pay in full all of the creditors and suppliers to the Franchised Business.
- (f) Pay All Subsequent Amounts.
Franchisee shall promptly pay to Franchisor all damages, costs and expenses including reasonable attorneys' fees, incurred by Franchisor subsequent to the termination, expiration, or non-renewal of this Agreement in obtaining injunctive or other relief for the enforcement of any term, covenant or provision of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More Franchise Disclosure Document, the franchise agreement stipulates that the franchisee is responsible for promptly paying all sums owed to Burneys Sweets More upon request. These sums encompass all damages, costs, losses, and expenses, including reasonable attorneys' fees, incurred by Burneys Sweets More as a result of the franchisee's default and the subsequent termination of the franchise agreement. This provision ensures that Burneys Sweets More can recover any financial losses it incurs due to a franchisee's failure to meet their contractual obligations.
Furthermore, any outstanding obligations to Burneys Sweets More will create a lien in favor of Burneys Sweets More against the franchisee's personal property, furnishings, equipment, signs, fixtures, and inventory located on the premises at the time of termination, expiration, or non-renewal of the agreement. This lien remains in effect until all debts are paid in full, providing Burneys Sweets More with a security interest in the franchisee's assets. The franchisee is also obligated to pay all creditors and suppliers to the franchised business within fifteen days of the agreement's expiration, termination, or non-renewal.
In addition to the immediate sums due, the franchisee is also responsible for promptly paying all damages, costs, and expenses, including reasonable attorneys' fees, incurred by Burneys Sweets More after the termination, expiration, or non-renewal of the agreement. These costs may arise from Burneys Sweets More seeking injunctive or other relief to enforce any term, covenant, or provision of the franchise agreement. This clause ensures that Burneys Sweets More can recover any legal costs associated with enforcing the agreement after its termination.