What are the requirements for a Burneys Sweets More franchisee to refurbish as a condition of transfer?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN AGREEMENT | SUMMARY | |
|---|---|---|---|
| l. | Franchisor's approval of transfer by franchisee | Franchise Agreement § 13(c)(ii), 13(d), 13(e) | Except for limited circumstances, our prior written approval is required for all transfers. The franchise can be terminated for non compliance. We will not unreasonably withhold approval. |
| m. Conditions for Franchisor's approval of transfer | Franchise Agreement § 13(d), 13(e) | You must be in compliance with the Franchise Agreement, refurbish as we require, and execute a general release. Transferee must have a credit rating, moral character, reputation and business qualifications satisfactory to us, and must meet all then current requirements of new franchisees. Transferee must attend and successfully complete our initial training, and execute the Franchise Agreement and collateral agreements in the then-current form, including personal guarantees. If a sale is involved, you must offer us a 45-day right of first refusal and a transfer fee of 50% of the then-current initial franchise fee must be paid. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 41–46)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, a franchisee must refurbish their shop as required by Burneys Sweets More as a condition for transfer. Additionally, the franchisee must be in compliance with the Franchise Agreement and execute a general release. The prospective transferee must have a credit rating, moral character, reputation, and business qualifications satisfactory to Burneys Sweets More and must meet all then-current requirements of new franchisees. The transferee must also attend and successfully complete Burneys Sweets More's initial training and execute the Franchise Agreement and collateral agreements in the then-current form, including personal guarantees. If a sale is involved, the franchisee must offer Burneys Sweets More a 45-day right of first refusal, and a transfer fee of 50% of the then-current initial franchise fee must be paid.
This means that if a Burneys Sweets More franchisee wants to sell their franchise to someone else, they will likely need to invest in upgrades or renovations to meet the current brand standards before the transfer can be approved. The extent of the required refurbishment is determined by Burneys Sweets More. This could involve anything from minor cosmetic updates to more significant structural changes, depending on the condition of the shop and the current brand image.
It is important for prospective franchisees to understand that the cost of refurbishment can be substantial and should be factored into the overall cost of selling the franchise. The requirement to refurbish the shop ensures that all Burneys Sweets More locations maintain a consistent brand image and meet the franchisor's standards. This protects the brand's reputation and ensures a positive experience for customers. Franchisees should discuss with Burneys Sweets More what the typical refurbishment requirements and costs have been for previous franchise transfers to get a sense of potential expenses.