Under what circumstances does Burneys Sweets More have the right to purchase assets from the franchisee?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may purchase all or only a portion of the assets of the Franchised Business and may exclude from its purchase any assets or cash, for any reason, in Franchisor's sole discretion.
Franchisor shall have the right to set off and apply any amounts due to Franchisee pursuant to this subsection against any and all other amounts which may be due from Franchisee to Franchisor.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the franchisor has broad discretion to purchase assets from the franchisee. Burneys Sweets More may purchase all or only a portion of the assets of the franchised business. The franchisor can also exclude specific assets or cash from the purchase, based on their sole discretion.
This clause gives Burneys Sweets More significant control over the assets of a franchise location. A potential franchisee should consider this carefully, as Burneys Sweets More could choose to buy only the most valuable assets, leaving the franchisee with less desirable ones.
Furthermore, the FDD states that Burneys Sweets More has the right to offset any amounts owed to the franchisee from the asset purchase against any debts the franchisee owes to Burneys Sweets More. This means that if a franchisee has outstanding financial obligations to Burneys Sweets More, those debts could be deducted from the payment received for the assets. Franchisees should seek legal counsel to fully understand the implications of this clause.