Does another Bang Cookies franchisee's failure to contribute to the Brand Development Fund release other franchisees from their obligations?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that the failure (whether with or without Franchisor's permission) of any other franchisee to make the appropriate amount of contributions to the Brand Development Fund shall not in any way release Franchisee from or reduce Franchisee's obligations under this Article 9, such obligations being separate and independent obligations of Franchisee under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, a franchisee's obligation to contribute to the Brand Development Fund is not affected by another franchisee's failure to contribute. Each franchisee's obligation is considered separate and independent. This means that even if another franchisee does not make the required contributions, a franchisee is still responsible for fulfilling their own obligations to the fund.
This clause protects Bang Cookies from a situation where a shortfall in the Brand Development Fund due to one franchisee's non-payment could be used as a justification for other franchisees to withhold their contributions. The Brand Development Fund is used for advertising, marketing, and public relations programs intended to enhance the overall brand.
As a Bang Cookies franchisee, it is important to understand that the obligation to contribute to the Brand Development Fund is independent of other franchisees' compliance. Failure to meet this obligation could result in penalties or other consequences as outlined in the franchise agreement, regardless of the financial standing or participation of other franchisees in the system. Franchisees cannot reduce or eliminate their contributions based on the actions of other franchisees.