From what date does the 10-year term of the Bang Cookies franchise agreement commence?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
ations by Franchisee. The applicable measurement period will be determined by Franchisor from time to time with respect to Franchisee's obligations to report financial information and data to Franchisor and Franchisee's payment of all fees and other obligations under this Agreement. The respective "Accounting Period" shall be those Franchisor designated times, whether, weekly, monthly, or otherwise, as designated by Franchisor, with all such Accounting Periods automatically commencing on the earlier of the (a) Scheduled Business Commencement Date, or (b) the Actual Business Commencement Date of the Franchised Business and, continuing, throughout the Term of this Agreement. Unless otherwise designated by Franchisor at any time, unless otherwise specified in this Agreement, the Accounting Period shall be a weekly period for each and every week throughout the Term of this Agreement.
"Actual Business Commencement Date" refers to and means the date of the grand opening of the Franchised Business and/or the date upon which the Franchised Business is open to the public.
- "Additional Initial Training Fee" shall have the meaning defined and set forth in Article 4.A. of this Agreement.
- "Advertising Contributions" refers to and means any and all obligations of Franchisee to contribute to or pay fees to Franchisor, Franchisor's affiliate and/or designees as set forth in this Agreement including, but not limited to, the Brand Development Fund Fee (Article 9.A.).
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
Based on the 2024 Bang Cookies Franchise Disclosure Document, the "Accounting Period" for measuring financial information and obligations begins on the earlier of two dates: the Scheduled Business Commencement Date or the Actual Business Commencement Date. This period continues throughout the entire term of the Franchise Agreement. Unless Bang Cookies designates otherwise, the Accounting Period is weekly.
The "Effective Date" of the Franchise Agreement is defined within the agreement itself. However, if the Effective Date cannot be determined from the Franchise Agreement, it defaults to the date the franchisee signs the agreement.
While these definitions provide clarity on the start of financial accounting and the agreement's effective date, the document does not explicitly state when the 10-year term of the Bang Cookies franchise agreement begins. To determine the exact start date of the 10-year franchise term, a prospective franchisee should ask Bang Cookies directly for clarification and refer to the specific language in the Franchise Agreement.