When does Bang Cookies designate a franchisee's Designated Territory?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
- (3) If, as of the Effective Date, Franchisee has selected a proposed Shop Location that Franchisor approves as Franchisee's Shop Location, then Franchisee's Shop Location and Designated Territory, if any, shall be identified in Schedule 1 of this Agreement. To be effective, Schedule 1 must be completed and signed by Franchisor. Franchisee's execution of Schedule 1 with a specific
location for Franchisee's Shop Location shall constitute Franchisee's obligation to develop and operate the Franchised Business at the designated Franchisee Shop Location;
- (4) If, as of the Effective Date, Franchisee has not selected a proposed Shop Location, and/or has not obtained Franchisor's approval of the proposed Shop Location, and/or Schedule 1 to this Agreement is left incomplete or is not signed by Franchisor, Franchisee must locate, identify and secure a Shop Location for the Franchised Business in accordance with the terms of this Agreement, including the requirement that Franchisee must obtain Franchisor's approval of Franchisee's Shop Location.
If, after the Effective Date, Franchisee proposes and Franchisor approves of Franchisee's proposed Shop Location, such approval must be in writing and must be evidenced by Franchisor's execution of Schedule 1 with a specific Shop Location designated and identified in Schedule 1.
At the time of executing a completed Schedule 1 and, thereby, approving Franchisee's proposed Shop Location, Franchisor, in Franchisor's discretion and Reasonable Business Judgment, shall designate and determine Franchisee's 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 timing of when a Designated Territory is assigned to a franchisee depends on whether a shop location has been selected and approved by Bang Cookies as of the Effective Date of the Franchise Agreement. The Effective Date is defined as the date set forth in the first paragraph of the Franchise Agreement.
If the franchisee has already chosen a location that Bang Cookies approves before the Effective Date, the shop location and Designated Territory (if any) will be specified in Schedule 1 of the Franchise Agreement. For this to be valid, Bang Cookies must complete and sign Schedule 1. The franchisee's signature on Schedule 1, which includes the shop location, commits them to developing and operating the Bang Cookies franchise at that location.
However, if a shop location hasn't been selected or approved by Bang Cookies, or if Schedule 1 is incomplete or unsigned by Bang Cookies as of the Effective Date, the franchisee is responsible for finding and securing a location that Bang Cookies approves. Once the franchisee proposes a location after the Effective Date and Bang Cookies approves it in writing by signing Schedule 1 with the specific location, Bang Cookies will then designate the franchisee's Designated Territory. This determination is made at Bang Cookies's discretion and using their Reasonable Business Judgment.