What is the deadline for the transferee to complete the required improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading of the Bang Cookies Shop Facility?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
- (8) Unless Franchisee has met the requirements of Article 3.E. within the five year period immediately preceding the Transfer, the transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's Bang Cookies Shop Facility to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, if a franchisee transfers their franchise to a new owner (the transferee), the transferee might need to upgrade the Bang Cookies shop to meet current standards. This requirement depends on whether the existing franchisee has already updated the shop within the five years before the transfer.
If the shop hasn't been updated recently, the transferee is responsible for the costs of improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading the Bang Cookies Shop Facility. The deadline for completing these upgrades is determined by Bang Cookies, who will specify a reasonable timeframe for the transferee to finish the work.
This means a potential buyer needs to be prepared for possible renovation expenses and should clarify the expected timeline with Bang Cookies during the transfer process. It is important to note that the timeframe is determined by Bang Cookies, so the transferee should factor this into their business plan and budget.