What is the definition of 'Services' in the Bang Cookies Franchise Agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
"Approved Services and Products" shall have the meaning defined in the "Recitals" section of this Agreement and shall further refer to and mean those products and services that we authorize for sale by Bang Cookies Shops. We shall exclusively designate and determine the Approved Services and Products and we, in our Reasonable Business Judgment, may change, modify, reduce or supplement the Approved Services and Products that must be offered and sold by the Franchised Business and those products and services that may not be sold by the Franchised Business. The operations manual, subject to changes that we may make from time to time and our right to change and modify the Approved Services and Products, shall designate the Approved Services and Products that must be offered and sold by the Franchised Business. The Franchised Business may only offer and sell the Approved Services and Products.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
The 2024 Bang Cookies Franchise Disclosure Document defines 'Approved Services and Products' rather than just 'Services'. According to the FDD, 'Approved Services and Products' are those products and services that Bang Cookies authorizes for sale by Bang Cookies Shops. Bang Cookies retains exclusive authority to designate and determine these approved services and products. They can also change, modify, reduce, or supplement the approved list based on their reasonable business judgment.
This means that as a franchisee, you are limited to selling only those services and products that Bang Cookies has explicitly approved. The operations manual, which Bang Cookies can modify, will list the approved items that the franchised business must offer and sell. Franchisees do not have the freedom to introduce new or different services or products without the franchisor's consent.
This control allows Bang Cookies to maintain consistency across all franchise locations and protect its brand standards. However, it also means that franchisees have limited autonomy in tailoring their offerings to local market demands. A prospective franchisee should carefully review the list of Approved Services and Products and consider whether it aligns with their market and business goals. It would be prudent to inquire about the process and criteria Bang Cookies uses for adding or modifying the list of approved items, as well as the potential for franchisee input in these decisions.