factual

Does the definition of 'Bang Cookies Shops' include businesses owned by affiliates?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

"- "Affiliates" means individually or collectively, any and all entities controlling, controlled by, or under common ownership with Franchisor.

  • "Bang Cookies Shop(s)" shall have the meaning defined in the Recitals section of this Agreement and, without limitation to the Recitals section definition of "Bang Cookies Shops", shall further include, refer to and mean: every business and all businesses owned and/or operated by Franchisor, Franchisor's affiliates and/or authorized franchisee(s) that utilize and/or is/are required to utilize the System and/or Licensed Marks including, but not limited to, the Franchised Business.

Source: Item 23 — RECEIPTS (FDD pages 56–245)

What This Means (2024 FDD)

According to Bang Cookies' 2024 Franchise Disclosure Document, the definition of "Bang Cookies Shop(s)" does include businesses owned and/or operated by affiliates of the franchisor. The definition encompasses every business owned or operated by Bang Cookies, its affiliates, and/or its authorized franchisees that utilize the Bang Cookies system and/or licensed marks. This includes, but is not limited to, the Franchised Business itself.

This definition is important for prospective franchisees because it clarifies the scope of what is considered a Bang Cookies shop. It confirms that the term includes not only franchised locations but also those operated by the franchisor and its affiliates. This can be relevant in various contexts, such as assessing market competition, understanding territorial rights, and interpreting other clauses within the franchise agreement that refer to "Bang Cookies Shops."

The inclusion of affiliate-owned businesses in the definition of "Bang Cookies Shops" means that franchisees may potentially compete with locations owned by the franchisor's related entities. Franchisees should carefully consider this when evaluating the potential market and location for their franchise. Understanding the presence and potential impact of affiliate-owned locations is a crucial part of due diligence before investing in a Bang Cookies franchise.

Furthermore, the FDD specifies that "Affiliates" means any entities controlling, controlled by, or under common ownership with Bang Cookies. This broad definition of affiliates suggests that a wide range of related businesses could fall under the umbrella of "Bang Cookies Shops," potentially impacting a franchisee's business operations and competitive landscape.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.