Does Burneys Sweets More have the right to assign its option to purchase the assets or interests?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Option to Lease. Landlord hereby agrees that, (i) in the event of the termination, non-renewal, or expiration of the Franchise Agreement by and between Tenant and Franchisor; (ii) the termination of the Form Lease for any cause whatsoever including, without limitation, a default by Tenant under the Form Lease after expiration of any applicable notice and cure periods; (iii) in the event of Tenant's failure to exercise any extension option contained in the Form Lease, (iv) upon the expiration of the Form Lease and any rights to extension or renewal; or (v) as otherwise permitted under the Franchise Agreement, Franchisor, any parent, subsidiary or affiliated company of Franchisor, or another BURNEY'S SWEETS & MORE franchisee shall have the option to lease the Premises pursuant to the same terms and conditions as are contained in the Form Lease, in accordance with the following:
- (a) Landlord agrees to promptly give Notice to Franchisor (at the address set forth herein) in the event the Form Lease is terminated as the result of a default by Tenant or in the event Tenant fails to exercise any remaining options to extend the term of the Form Lease;
- (b) If Franchisor, any parent, subsidiary or affiliated company of Franchisor, or another BURNEY'S SWEETS & MORE franchisee elects to lease the Premises, such party shall notify Landlord in writing of its election to exercise this option to lease within thirty (30) days after (1) termination, non-renewal, or expiration of the Franchise Agreement; (2) Franchisor's receipt of Notice from Landlord that the Form Lease has been terminated; (3) receipt of Notice from Landlord that Tenant has failed to exercise an option to extend the term of the Form Lease; or (4) Notice from Landlord that the Form Lease and any rights to extension or renewal will expire;
- (c) If Franchisor, any parent, subsidiary or affiliated company of Franchisor, or another BURNEY'S SWEETS & MORE franchisee elects to lease the Premises under any of the conditions set forth in 5(i) to (v) above, Franchisor, any parent, subsidiary or affiliated company of Franchisor, or another BURNEY'S SWEETS & MORE franchisee shall sign and deliver to Landlord a lease containing all of the same terms and conditions (including rental
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More FDD, the franchisor, any parent, subsidiary, or affiliated company of the franchisor, or another Burneys Sweets More franchisee can benefit from the assignment of interest related to the lease agreement. Specifically, in the event of termination, non-renewal, or expiration of the Franchise Agreement, or the termination of the Form Lease, Burneys Sweets More, its affiliates, or another franchisee has the option to lease the premises.
Burneys Sweets More, or one of the related entities, must notify the landlord in writing within thirty days of the triggering event (termination, non-renewal, etc.) if they elect to exercise this option. If the option is exercised, they must sign and deliver a lease with the same terms and conditions as the original Form Lease.
This clause ensures that Burneys Sweets More has options to maintain a location for continued operation under the brand, even if the original franchisee's agreement ends. For a prospective franchisee, this means that in certain circumstances, Burneys Sweets More could transfer the franchisee's location to another operator within the Burneys Sweets More system.