What triggers the 'Insufficient Funds' fee for a Burneys Sweets More franchise?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Insurance Premium Reimbursement | Actual out-of-pocket costs; varies according to plan and provider. | Upon demand. | If you do not purchase the required insurance, we may purchase it and you must reimburse us. |
| Enforcement Costs | Our costs and expenses. | As incurred. | You must pay our costs of enforcement (including attorneys' fees and costs) if you do not comply with the Franchise Agreement. |
| Continued Operation After Expiration | Greater of $1,000 per month or 150% of royalties per month. | Monthly | If we permit you continue to operate the Franchised Business on a month-to month basis after expiration of the Franchise Agreement, then you must pay to us, in addition to all Royalties and other fees due to us, a monthly fee equal to the greater of $1,000 or 150% of the royalties due for the same month for every month during the month-to-month operations, up to our then-current initial franchise fee. |
| Insufficient Funds | $25 plus any fee charged us for uncollected funds. | Upon notice | Failure to have sufficient funds available for payments to us. |
| Failure to attend required training/convention | Increase royalty by up to 1% for balance of calendar year. | Upon notice of infraction. Will be collected by EFT. | Additional royalty to compensate us for your failure to attend training/convention. |
| Quality Control Review Services | Our costs and expenses. | As incurred. | If we implement a quality control program, you will pay your share of the costs and expenses of the program. |
| Name of Fee1 | Amount | Due Date | Remarks |
| --------------------------------------- | ----------------------------------------------------------------------------- | -------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Third Party Supplier Charges | Your share of any charges billed to us on behalf of your business. | As incurred. | Sometimes it may be in the best interest of the BURNEY'S SWEETS & MORE brand for suppliers to bill us a system-wide charge for a product or service. We will then divide the invoice among our franchisees and charge you for your share. |
| Data Inspections and Reimbursement | Our costs and expenses. | Upon demand. | If you repeatedly violate the required data privacy and security obligations under the Franchise Agreement, we reserve the right to charge you our costs and expenses to inspect your business. Additionally, you are responsible for our costs and expenses that arise from your non-compliance or a security breach caused by you or your personnel. |
| Goods and Services | Current prices and fees. | As incurred | We may be the supplier of goods and services in the future and you may be required to pay us for those goods and services at the then-current rates. |
| Business Directory Listings | Actual out-of-pocket costs. | Upon demand. | You will place and pay the cost of business listings in the directories and categories we specify. Alternatively, we can do so on your behalf and at your expense. |
Source: Item 6 — OTHER FEES (FDD pages 11–17)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, an 'Insufficient Funds' fee is triggered when a franchisee fails to have sufficient funds available for payments to the company. The fee is $25, plus any additional charges Burneys Sweets More incurs due to the uncollected funds. This fee is due upon notice from Burneys Sweets More.
This means that if a franchisee's payment to Burneys Sweets More is rejected due to insufficient funds in their account, they will be charged this fee in addition to the original payment amount. This could occur for various payments, such as royalties or other fees outlined in the FDD. Franchisees should ensure they have adequate funds available when payments are due to avoid this charge.
It is important for prospective Burneys Sweets More franchisees to understand all the fees associated with the franchise and to manage their finances carefully to avoid incurring additional costs like the 'Insufficient Funds' fee. Maintaining sufficient funds in the designated account for payments is a simple way to prevent this fee.