Does Burneys Sweets More require an addendum to the lease agreement?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of a conflict between the terms and conditions set forth within this Rider and the terms and conditions set forth in the Form Lease to which this Rider is attached, the terms and conditions set forth within this Rider shall govern and control.
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Permitted Use.
The Premises are leased to Tenant for the operation of a franchised limited-seating, fast-casual Shop emphasizing high-quality, glazed and stuffed croissants, donuts, cakes, pies, cookies, other dessert items, coffee and other beverages.
The Tenant may also use the Premises for promotions, celebrations, meetings, and other group functions where Tenant's services and products will be offered or sold.
Landlord covenants that from and after the date hereof, Landlord shall not permit any other tenant to operate a Shop in the same shopping center as the Premises that receives twenty-five percent (25%) or more of its gross sales from the sale of bakery items, including but not limited to, cakes, croissants, and/or pies, on a dine-in or carry-out basis.
Signage.
Notwithstanding anything contained within the Form Lease to the contrary, Tenant shall, subject to the requirements of local law, have the right to utilize its standard signage and other proprietary marks and identification on both the exterior and within the interior of the Premises as approved by DMG BURNEY, INC., a North Carolina corporation and franchisor of the BURNEY'S SWEETS & MORE concept ("Franchisor").
Assignment and Subletting.
Landlord's consent to an assignment of the Form Lease or subletting of the Premises shall not be required in connection with an assignment or subletting as a part of a merger, reorganization or sale of all or substantially all of Tenant's assets or business or an assignment or sublet, or as otherwise provided for in the Franchise Agreement between Franchisor and Tenant to Franchisor, any parent, subsidiary or affiliate of Tenant or affiliate of Franchisor, or another BURNEY'S SWEETS & MORE franchisee.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More FDD, a rider or addendum to the standard lease agreement is required. This rider modifies the standard lease to protect Burneys Sweets More's interests.
Several provisions within the rider address the relationship between the landlord, the tenant (franchisee), and Burneys Sweets More. These include granting Burneys Sweets More the option to lease the premises under certain conditions, such as the termination or non-renewal of the franchise agreement or the tenant's default. The rider also ensures that the franchisee can use Burneys Sweets More's signage and proprietary marks, and it restricts the landlord from allowing competing businesses that derive a significant portion of their sales from similar bakery items within the same shopping center.
Additionally, the rider includes clauses about de-identification of the premises if the franchise agreement ends, allowing Burneys Sweets More to enter the premises to remove branding. It also covers assignment and subletting rights, waiving the landlord's consent under specific conditions like a merger or sale of the franchisee's business. The rider also ensures that the franchisee's rights are protected by mortgage lenders through non-disturbance agreements and subordinates the landlord's security interest in the franchisee's property to any security interest granted to Burneys Sweets More.