What is the definition of 'Approved Location' in the Bang Cookies Franchise Agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
ement and Guaranty" attached to this Agreement as Exhibit 1.
"Franchised Business" refers to and means the Bang Cookies Shop that Franchisee is required to develop, maintain and operate as part of the System and in accordance with the terms, conditions and obligations set forth in this Agreement and the operations manual.
"Franchisee's Shop Facility" refers to and means the Shop Facility from which Franchisee develops, operates and manages the Franchised Business. Franchisee's Shop Facility must be located at a Shop Lo
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the term "Franchisee's Shop Location" refers to the physical location from which the franchisee operates their Bang Cookies shop. This location must be approved by Bang Cookies, in their Reasonable Business Judgment, and designated in accordance with Schedule 1 of the Franchise Agreement.
Effectively, a prospective Bang Cookies franchisee is responsible for finding a location for their shop, but the franchisor has the final say in approving that location. This approval process is crucial because the location significantly impacts the success of the franchise. The franchisor's approval ensures that the location meets their standards and is suitable for operating a Bang Cookies shop.
The FDD states that the location must be designated in Schedule 1 of the agreement, highlighting the importance of this document. Schedule 1 serves as formal confirmation of the approved location. Without the franchisor's signature on Schedule 1, the franchisee is obligated to find a suitable location and obtain the franchisor's approval. This process protects both the franchisee and the franchisor by ensuring that the shop is located in an appropriate and viable location.
If a franchisee wishes to relocate their Bang Cookies shop, they must obtain prior written consent from Bang Cookies, which Bang Cookies may refuse in its Reasonable Business Judgment. Bang Cookies may condition its consent on requirements including that the proposed Shop Location meet and satisfy Bang Cookies' then current standards for Shop Locations and that the proposed Shop Facility meet and satisfy Franchisor's then current standards for Shop Facilities.