Does Burneys Sweets More have the right to disapprove a proposed franchise transfer?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will notify Franchisee and the Owner, if applicable, in writing that it is (a) exercising its right of first refusal, (b) approving the transfer or (c) denying approval of the transfer pursuant to this Section 13. During said forty-five (45) day period, Franchisor shall have the right to inspect all Franchisee's books and records relating to the Franchised Business, specifically including all financial records and statements for the three (3) full fiscal years preceding the date on which the forty-five (45) day right of first refusal commences. If Franchisor does not exercise its right of first refusal, any material change in the terms of an offer prior to closing shall cause it to be deemed a new offer, subject to the same right of first refusal by Franchisor as in the case of the initial offer. Franchisor has the unrestricted right to assign this option to purchase the assets or interests.
- (ii) Approval of Transfers.
If Franchisor decides not to exercise its right of refusal, Franchisor shall have the right to approve or disapprove the proposed transfer; provided, however, Franchisor's consent shall not be unreasonably withheld as provided in Section 13(d).
If Franchisor approves the transfer in writing
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, Burneys Sweets More has the right to either approve or disapprove a proposed franchise transfer if they decide not to exercise their right of first refusal. However, Burneys Sweets More's consent to a transfer cannot be unreasonably withheld, as specified in Section 13(d) of the franchise agreement.
Before making a decision, Burneys Sweets More has a 45-day period to evaluate the proposed transfer. During this time, Burneys Sweets More has the right to inspect all of the franchisee's books and records related to the Burneys Sweets More franchised business. This includes financial records and statements for the three full fiscal years before the start of the 45-day review period.
If Burneys Sweets More does not exercise its right of first refusal and there are any material changes to the terms of the offer before closing, it will be considered a new offer. This new offer would then be subject to the same right of first refusal by Burneys Sweets More as the original offer. Burneys Sweets More also retains the right to assign its option to purchase the assets or interests to another party.