What is the definition of 'Competitive Business' for a Bang Cookies franchise?

According to the 2024 Bang Cookies Franchise Disclosure Document, a 'Competitive Business' is defined as any shop that is the same as or similar to a Bang Cookies Shop. This includes any business, bakery, or shop that offers, sells, or provides cookies, brownies, and/or cakes. The definition encompasses traditional outlets, mobile kiosks, food trucks, and non-traditional outlets.

This definition is important for prospective franchisees because it outlines the types of businesses that Bang Cookies would consider competitive, which can impact the franchisee's ability to operate similar businesses during and after the franchise agreement term. The restrictive covenants in the franchise agreement prevent franchisees from engaging in unfair competition, and this definition clarifies what constitutes such competition.

Specifically, during the term of the agreement, franchisees are prohibited from owning or having an interest in a Competitive Business (other than a small interest in a publicly traded company), operating or managing a Competitive Business, or diverting customers from Bang Cookies to another business. After the agreement terminates, these restrictions may continue, further emphasizing the importance of understanding this definition. Franchisees should carefully consider this definition and the associated restrictions to ensure they do not inadvertently violate the franchise agreement.