What is the definition of 'Designated Territory' in the Bang Cookies Franchise Agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
"Designated Territory" refers to and means the territory identified and described in Schedule 1 attached to and made a part of this Agreement or, if Schedule 1 is not completed at the time of signing this Agreement, as Schedule 1 is otherwise completed in accordance with this Agreement. Franchisor, in Franchisor's Reasonable Business Judgment and discretion, shall determine the Designated Territory. If Schedule 1 is not completed and/or is not signed by Franchisor there shall be no Designated Territory.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the 'Designated Territory' refers to the specific area outlined in Schedule 1 of the Franchise Agreement. This schedule details the geographic boundaries within which the franchisee is expected to operate. However, if Schedule 1 is not completed or signed by Bang Cookies at the time of signing the agreement, or is completed later, there is no Designated Territory granted to the franchisee.
The determination of the Designated Territory is at Bang Cookies's discretion, using their reasonable business judgment. This means that Bang Cookies has the authority to define the territory based on factors they deem relevant to the business. It is important to note that the absence of a completed and signed Schedule 1 effectively means the franchisee does not have an exclusive territory.
This aspect of the agreement carries significant implications for prospective Bang Cookies franchisees. Without a Designated Territory, a franchisee may face direct competition from other Bang Cookies shops or franchisees in close proximity. The franchisee should confirm whether Schedule 1 is completed and signed by Bang Cookies to ensure they understand their territorial rights and limitations before entering into the agreement.