What is the definition of 'Owner' in the Bang Cookies franchise agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
"Owner" refers to and means collectively, individually and jointly: (a) the officers and directors of Franchisee (including the officers and directors of any general partner of Franchisee) who hold an ownership interest in Franchisee; (b) the managing member or manager of Franchisee, if franchisee is a limited liability company; (c) all holders of a 5% or more direct or indirect ownership interest in
Franchisee and/or of any entity directly or indirectly controlling Franchisee; and (d) the Managing Owner(s). Franchisee's Owners are identified in Schedule 2 to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the term 'Owner' has a specific legal meaning within the context of the franchise agreement. It refers to several categories of individuals and entities involved in the ownership and control of the franchisee.
The definition includes (a) the officers and directors of the franchisee, especially if the franchisee is a corporation, including those of any general partner; (b) the managing member or manager if the franchisee is a limited liability company; (c) any individual or entity holding a 5% or more direct or indirect ownership interest in the franchisee or any entity controlling the franchisee; and (d) the Managing Owner(s). The specific individuals and entities considered 'Owners' are further identified in Schedule 2 of the Franchise Agreement.
This definition is important because the obligations and responsibilities under the franchise agreement extend not only to the franchisee company itself but also to these defined 'Owners'. This ensures that individuals with significant control or ownership stake are also bound by the agreement's terms, which may include personal guarantees or other liabilities. Prospective franchisees should carefully review Schedule 2 and understand who is considered an 'Owner' to fully grasp the extent of their obligations.