Are there any exceptions to the termination of the Seller Franchise Agreement for Burneys Sweets More?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and Seller acknowledge and agree that, as of the date of Closing, upon the Transfer and upon compliance with the conditions set forth in Section 3 above, the Seller Franchise Agreement and the guaranties (if any) will automatically terminate and neither Seller nor Seller Guarantors shall have any further rights or obligations thereunder except that neither Seller nor any Seller Guarantor shall be released from:
a. any obligations to pay money to Franchisor owed under either the Seller Franchise Agreement or the guaranty prior to Closing; or
b. the provisions of the Seller Franchise Agreement that, either expressly or by their nature, survive termination of the Seller Franchise Agreement (including without limitation the post-termination restrictive covenants, audit rights, dispute resolution and notice, and confidentiality provisions of the Seller Franchise Agreement).
Source: Item 23 — RECEIPT (FDD pages 50–199)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More FDD, the Seller Franchise Agreement and any associated guaranties will automatically terminate upon the transfer of the franchise and compliance with specific conditions outlined in Section 3 of the agreement. However, there are exceptions to the release of obligations for the seller and seller guarantors.
Specifically, the seller and seller guarantors are not released from any obligations to pay money owed to Burneys Sweets More under the Seller Franchise Agreement or any guaranty prior to the closing date. Additionally, the termination does not affect provisions of the Seller Franchise Agreement that, either expressly or by their nature, survive termination.
These surviving provisions include, but are not limited to, post-termination restrictive covenants, audit rights, dispute resolution and notice procedures, and confidentiality provisions outlined in the Seller Franchise Agreement. This means that even after the franchise agreement is terminated, certain obligations and restrictions may still apply to the seller and their guarantors.