What qualifications must the proposed transferee of a Burneys Sweets More franchise meet?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
- (vi) Continuing Obligations.
Franchisee and any Owner transferring an interest in Franchisee acknowledges and agrees in writing that it is bound by Sections 14, 15 and 23 of this Agreement.
- (vii) Transfer Fee.
Franchisee or the Owner, as applicable, pays to Franchisor a transfer fee equal to fifty percent (50%) of the then-current franchise fee, which fee must be deposited with Franchisor on a non-refundable basis upon Franchisee's notification to Franchisor of the proposed transfer and prior to Franchisor's undertaking any review, drafting of documents, training or other activities.
If Franchisor does not approve the transfer, Franchisee's transfer f
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise must ensure the proposed transferee meets certain obligations. Specifically, both the franchisee and any owner transferring interest must acknowledge and agree in writing to be bound by Sections 14, 15, and 23 of the Franchise Agreement, which likely cover ongoing responsibilities and legal commitments.
Additionally, the franchisee must pay Burneys Sweets More a transfer fee equal to fifty percent (50%) of the then-current franchise fee. This fee is due upon notifying the franchisor of the proposed transfer and is non-refundable, regardless of whether the transfer is ultimately approved. This upfront payment covers the franchisor's costs for reviewing the application, drafting documents, and providing training to the new franchisee.
If Burneys Sweets More does not approve the transfer, the franchisee's transfer fee will not be refunded. This highlights the importance of ensuring the proposed transferee is likely to be approved before initiating the transfer process and incurring the transfer fee. Franchisees should carefully consider these financial implications and obligations before proceeding with a transfer.