What is the consequence of failing to comply with the Development Schedule for a Bang Cookies franchise?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that "time is of the essence" with respect to Franchisee's development obligations under this Agreement, and that Franchisee's failure to comply with the Development Schedule is grounds for immediate termination of this Agreement and, any future development rights granted 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 failure to comply with the Development Schedule is grounds for immediate termination of the Development Agreement. The Development Schedule outlines the specific timeframes (Development Periods) within which a franchisee must open and operate a certain number of Bang Cookies shops (Newly Opened Development Shops) to meet the minimum cumulative number of shops (Cumulative Development Shops). This schedule is detailed in the Development Information Sheet.
The Development Agreement grants the franchisee the right and obligation to develop Bang Cookies shops within a defined Development Area, provided they strictly adhere to the Development Schedule. The franchisor emphasizes that "time is of the essence" regarding these development obligations. This means that any delay or failure to meet the schedule can be considered a material breach of the agreement.
Bang Cookies retains the right to terminate the Development Agreement without allowing the franchisee an opportunity to correct the failure if the franchisee does not meet the development obligations. This includes failing to establish, open, and maintain the required cumulative number of Bang Cookies shops as per the Development Schedule. The franchisee acknowledges the reasonableness and viability of the Development Schedule and recognizes that not achieving the outlined results constitutes a material breach of the agreement.