Does the definition of 'Competitive Business' for Bang Cookies include traditional outlets?

According to Bang Cookies's 2024 Franchise Disclosure Document, the definition of a 'Competitive Business' does include traditional outlets. The document specifies that a 'Competitive Business' is any shop similar to a Bang Cookies shop, including traditional outlets, mobile kiosks, food trucks, and non-traditional outlets, that offer cookies, brownies, or cakes.

This definition is important for prospective franchisees because it outlines the types of businesses that Bang Cookies would consider competitive, which could impact the franchisee's ability to operate similar businesses during and after the franchise agreement term. Understanding this definition is crucial for assessing potential conflicts of interest and the scope of non-compete obligations.

Specifically, during the term of the agreement, franchisees are prohibited from owning or having an interest in a 'Competitive Business,' operating or managing such a business, or diverting customers from Bang Cookies. This restriction extends to traditional outlets, meaning a franchisee cannot own or operate a traditional bakery or cookie shop while operating a Bang Cookies franchise. This restriction also extends to the franchisee's owners and spouses, who must also sign agreements to this effect.

After the franchise agreement terminates, similar restrictions apply, further emphasizing the importance of understanding what Bang Cookies considers a 'Competitive Business.' This broad definition ensures that franchisees are restricted from engaging in businesses that could directly compete with Bang Cookies, protecting the brand's market position and the interests of other franchisees.