Must the transferee execute the then-current Burneys Sweets More Franchise Agreement?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN AGREEMENT | SUMMARY | |
|---|---|---|---|
| l. | Franchisor's approval of transfer by franchisee | Franchise Agreement § 13(c)(ii), 13(d), 13(e) | Except for limited circumstances, our prior written approval is required for all transfers. The franchise can be terminated for non compliance. We will not unreasonably withhold approval. |
| m. Conditions for Franchisor's approval of transfer | Franchise Agreement § 13(d), 13(e) | You must be in compliance with the Franchise Agreement, refurbish as we require, and execute a general release. Transferee must have a credit rating, moral character, reputation and business qualifications satisfactory to us, and must meet all then current requirements of new franchisees. Transferee must attend and successfully complete our initial training, and execute the Franchise Agreement and collateral agreements in the then-current form, including personal guarantees. If a sale is involved, you must offer us a 45-day right of first refusal and a transfer fee of 50% of the then-current initial franchise fee must be paid. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 41–46)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, a transferee—the person or entity buying an existing Burneys Sweets More franchise—must execute the then-current Franchise Agreement. This requirement is part of the conditions for Burneys Sweets More's approval of the transfer. The transferee must also meet all the then-current requirements of new franchisees, attend and successfully complete the initial training program, and execute all collateral agreements in the then-current form, including personal guarantees.
This stipulation ensures that all Burneys Sweets More franchisees operate under the same, up-to-date terms and conditions. It protects the brand's consistency and standards across all locations. For a prospective seller, this means finding a buyer who is willing and able to meet these requirements, which could potentially narrow the pool of eligible buyers.
For a prospective buyer, it means understanding that they will not simply be assuming the existing agreement but entering into a new agreement with Burneys Sweets More under the terms currently being offered to new franchisees. This could include different fee structures, operational requirements, or brand standards than those in place under the original agreement. The transferee will also need to complete the initial training, regardless of prior experience in the business, and provide any required personal guarantees.
In addition to these conditions, the seller must be in compliance with the Franchise Agreement, refurbish the premises as required by Burneys Sweets More, and execute a general release. Burneys Sweets More also retains a 45-day right of first refusal to acquire the franchisee's business. If a sale occurs, the seller must pay a transfer fee of 50% of the then-current initial franchise fee.