What is the definition of 'Renewal Fee' in the Bang Cookies Franchise Agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
(4) Franchisee must update and/or agree to update the condition, appearance and functionality of Franchisee's Shop Facility and Franchisee's Shop Location and to otherwise modify Franchisee's Shop Facility and Franchisee's Shop Location in compliance with Franchisor's specifications and standards then applicable for new Bang Cookies Shops;
(5) Franchisee pays the Renewal Fee and Franchisee agrees to, signs, and delivers to Franchisor, within 30 days of the date of delivery by Franchisor to Franchisee, Franchisor's then current form Shop Franchise Agreement for the Renewal Term (the "Renewal Franchise Agreement");
(6) Franchisee's Owners and their Spouses, respectively, must agree to, sign, and deliver to Franchisor, within 30 days of the date of delivery by Franchisor to Franchisee, Franchisor's then current individual guaranty agreements, and, thereby, among other things, individually and jointly guarantee the full and complete performance of the Renewal Franchise Agreement including, but not limited to, payment obligations, non-compete obligations, and restrictive covenants (the "Renewal Ancillary Agreements");
(7) Franchisee and the Owners must, prior to the Renewal Term, undertake and complete, to Franchisor's satisfaction, such additional training, if any, as designated and determined by Franchisor in Franchisor's Reasonable Business Judgment; and
(8) Franchisee and the Owners must agree to, sign, and deliver to Franchisor, within 30 days of the date of delivery by Franchisor to Franchisee, Franchisor's then current form of general release whereby Franchisee and Franchisee's Owners shall each fully release and discharge Franchisor, Franchisor's affiliates and it's officers, directors, shareholders, partners, agents, representatives, independent contractors, servants, employees, successors and assigns from any and all claims, causes of action, and suits arising from and/or related to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
The 2024 Bang Cookies Franchise Disclosure Document does not explicitly define "Renewal Fee." However, it does outline the requirements a franchisee must meet to renew their franchise agreement.
According to the FDD, to renew the franchise agreement, a Bang Cookies franchisee must update their shop to meet the current standards for new Bang Cookies shops. They must also pay the renewal fee and agree to, sign, and deliver the current form of the Shop Franchise Agreement for the Renewal Term to Bang Cookies within 30 days of receiving it from the franchisor.
Furthermore, the franchisee's owners and their spouses must sign and deliver individual guaranty agreements to guarantee the performance of the Renewal Franchise Agreement. The franchisee and owners must also complete any additional training required by Bang Cookies and sign a general release, discharging Bang Cookies from any claims related to the original agreement.
Because the specific definition of 'Renewal Fee' is not provided, prospective franchisees should ask Bang Cookies for a detailed explanation of what the renewal fee covers, how it is calculated, and when it is due. This will help them understand the full financial commitment required for renewing their franchise.