Under what condition is the Burneys Sweets More transfer fee refundable?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | 50% of then-current initial franchise fee. | When the transfer application is submitted. | Fee must be deposited with us on a non-refundable basis upon notification to us of a proposed transfer and prior to our undertaking any review, drafting of documents, training, or other activities. If we do not approve the transfer, the transfer fee will be returned minus our expenses incurred (including legal fees) for review and consideration of the transfer. |
Source: Item 6 — OTHER FEES (FDD pages 11–17)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the transfer fee is conditionally refundable. The standard transfer fee is 50% of the then-current initial franchise fee. This fee must be deposited with Burneys Sweets More on a non-refundable basis when a franchisee notifies them of a proposed transfer and before Burneys Sweets More undertakes any review, document drafting, training, or other related activities.
However, the FDD states that if Burneys Sweets More does not approve the transfer, the transfer fee will be returned to the franchisee. The refund is not for the entire amount, as Burneys Sweets More will deduct expenses incurred for the review and consideration of the transfer, including legal fees.
This conditionality is important for prospective franchisees to understand. While a transfer fee is typically non-refundable to cover the franchisor's costs of processing the transfer, Burneys Sweets More provides a partial refund if the transfer is not approved, which is more favorable than some other franchise systems. However, the franchisee bears the risk of covering Burneys Sweets More's expenses related to the attempted transfer if it ultimately falls through.