What is the seller obligated to pay Burneys Sweets More before the closing date?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
nt of Amounts Due. Seller will pay all amounts due and owing to Franchisor through the date of Closing; including but not limited to past due royalty and advertising fees
Source: Item 23 — RECEIPT (FDD pages 50–199)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, a seller transferring their franchise to a new buyer has certain financial obligations to Burneys Sweets More that must be met before the transfer can be completed. Specifically, the seller must pay all outstanding amounts owed to Burneys Sweets More through the closing date. This includes, but is not limited to, any past due royalty fees and advertising fees. The exact amount of these fees is not specified in the document but would need to be calculated and paid in full.
In addition to covering any outstanding debts, the seller is also responsible for paying a transfer fee as stipulated in the Seller Franchise Agreement. The specific amount of this transfer fee is not provided in this excerpt but is determined by the terms outlined in the original franchise agreement.
These requirements ensure that Burneys Sweets More receives all due payments before a franchise changes hands, protecting their financial interests and maintaining the integrity of the franchise system. A prospective seller should carefully review their franchise agreement to understand the exact amounts they will be required to pay to facilitate a transfer.