When are Transfer Damages due to Burneys Sweets More?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Damages | 15% of the price paid by the transferee or $25,000, whichever is greater. | Within 15 days of our demand. | Due only if you breach your transfer obligations to us. These are liquidated damages and not a penalty. |
Source: Item 6 — OTHER FEES (FDD pages 11–17)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, Transfer Damages are due within 15 days of Burneys Sweets More's demand. This fee is imposed only if a franchisee breaches their transfer obligations to Burneys Sweets More.
The amount of the Transfer Damages is substantial: 15% of the price paid by the transferee or $25,000, whichever is greater. The FDD explicitly states that these damages are considered liquidated damages and not a penalty, which means they are intended to compensate Burneys Sweets More for the anticipated harm caused by the franchisee's breach of transfer obligations.
Prospective franchisees should carefully review the transfer provisions in the Franchise Agreement to understand what actions or omissions could trigger these damages. It's also important to consider the potential financial impact of such a large fee when evaluating the overall costs and risks of investing in a Burneys Sweets More franchise. Franchisees should seek legal counsel to fully understand their obligations and potential liabilities related to transferring their franchise.