What is the seller's obligation regarding the provision of financial statements to Burneys Sweets More?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
I have received a disclosure document dated April 30, 2025, that included the following: Exhibit A – BURNEY'S SWEETS & MORE Franchise Agreement, with Attachment 1 (Franchise Rider), Attachment 2 (Lease Rider), Attachment 3 (Internet, Social Media, and Telephone Assignment), Attachment 4 (Guaranty), Attachment 5(a) (Noncompetition Agreement), and Attachment 5(b) (Nondisclosure and Non-Solicitation Agreement), Exhibit B-1 – Shop Directory/Listing of Current Franchisees, Exhibit B-2 – Listing of Certain Past Franchisees Exhibit C – Financial Statements, Exhibit D – State Specific Information, Exhibit E – Federal and State Regulators and Agents for Service of Process, Exhibit F –Sample General Release Agreement, Exhibit G – ACH/EFT Transfer Agreement, Exhibit H – First Addendum to Renewal Franchise Agreement, Exhibit I – Agreement and Conditional Consent to Transfer, Exhibit J – Small Business Administration Addendum, Exhibit K – Form of Franchise Compliance Certification, Exhibit L – Receipt
Source: Item 23 — RECEIPT (FDD pages 50–199)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More FDD, the seller is obligated to provide financial statements as part of the disclosure document. Specifically, Exhibit C of the disclosure document includes the financial statements. This indicates that Burneys Sweets More provides potential franchisees with access to their financial records, allowing them to assess the financial health and stability of the company.
These financial statements offer insights into Burneys Sweets More's revenue, expenses, assets, and liabilities. A prospective franchisee can use this information to evaluate the franchisor's financial performance and make informed decisions about investing in a franchise. The financial statements are audited by Thompson, Price, Scott, Adams & Co., P.A., and their report is included, indicating an independent review of the company's financials.
The inclusion of audited financial statements in the disclosure document is a standard practice in franchising, as it promotes transparency and helps potential franchisees conduct their due diligence. By providing these statements, Burneys Sweets More enables prospective franchisees to understand the financial aspects of the franchise system and assess the risks and rewards associated with investing in a Burneys Sweets More franchise.