What constitutes 'Abandonment' of a Bang Cookies franchise?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
SECTION 1 DEFINITIONS
Supplementing the definitions contained in the Recitals, above, the following terms will have the meaning as defined below:
"Abandonment" refers to and means the conduct of the Franchisee, including acts of omission as well as commission, indicating the willingness, desire or intent of the Franchisee to discontinue the development and/or operation of the Bang Cookies Shops in the Development Area in accordance with the terms of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, 'Abandonment' refers to the actions or inactions of a franchisee that indicate a willingness, desire, or intent to discontinue the development and/or operation of Bang Cookies Shops within their designated Development Area, as defined by the franchise agreement.
This definition is important because, under Section 3.2, the franchisor has the right to terminate the agreement immediately if a franchisee abandons their obligations. This termination can occur without any opportunity for the franchisee to correct the issue.
Furthermore, the franchisor can terminate the agreement if the franchisee fails for four consecutive months, or any shorter period that indicates an intent, to continue developing shops within the Development Area. This clause highlights the importance of franchisees maintaining consistent progress in establishing and operating their Bang Cookies locations as per the development schedule outlined in their agreement.