Can Bang Cookies and its affiliates receive payments from suppliers and/or distributors?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor and its affiliates may receive payments from suppliers and/or distributors on account of
such supplier's or distributor's dealings with Franchisee and other franchisees and Franchisor may use all amounts so received without restriction and, for any purpose, including Franchisor's profit.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, Bang Cookies and its affiliates are permitted to receive payments from suppliers and/or distributors based on their dealings with franchisees. This arrangement allows Bang Cookies to use these received amounts without any restrictions and for any purpose, including generating profit for the company.
For a prospective Bang Cookies franchisee, this means that the franchisor may have financial incentives to select certain suppliers or distributors over others, potentially without the franchisee's direct input or benefit. While this is a common practice in franchising, it's important for franchisees to understand that the franchisor's choice of suppliers might not always be the most cost-effective or advantageous for the individual franchise unit.
This arrangement is fully at the discretion of Bang Cookies, and they are not obligated to share these payments with franchisees. Franchisees should consider this when evaluating the overall cost and potential profitability of a Bang Cookies franchise, as it could influence the pricing and sourcing of supplies.