Is the Bang Cookies Development Agreement always required to be signed in addition to the Franchise Agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
tions requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
IN WITNESS WHEREOF, the parties have duly executed and delivered this Maryland amendment to the Bang Cookies Franchise LLC Franchise Agreement and, if applicable, the Development Agreement on the same date as the Franchise Agreement and Development Agreement were, respectively, executed.
| Franchisor: Bang Cookies Franchise LLC Franchisee: | | | |----------------------------------------------------------|---------------------|--| | Signature | Signature | | | Name and Title (please print) | Name (please print) | | | Dated | Dated Signature Name (please print) Dated | | | | | |
MINNESOTA FRANCHISE AND DEVELOPMENT AGREEMENT AMENDMENT
Amendments to the Bang Cookies Franchise Agreement
In recognition of the requirements of the Minnesota Statutes, Chapter 80C. and Minnesota Franchise Rules, Chapter 2860, the parties to the attached Bang Cookies Franchise LLC Franchise Agreement (the "Franchise Agreement") and, if Franchisor and Franchisee both sign the Bang Cookies Franchise LLC Multi-Unit Development Agreement (the "Development Agreement"), as follows:
1.Article 14.C of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," subarticle 14.C(6) is supplemented with the addition of the following language:
; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Minnesota Franchise Act, Minn. Stat. Section 80C.14 et seq.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to the 2024 Bang Cookies Franchise Disclosure Document, the Development Agreement is not always required to be signed in addition to the Franchise Agreement. Several state-specific amendments to the Franchise Agreement include the phrase "if Franchisor and Franchisee both sign the Bang Cookies Franchise LLC Multi-Unit Development Agreement." This indicates that the Development Agreement is contingent on both parties agreeing to it, implying it is not a mandatory part of every franchise deal. These states include Minnesota, Illinois, Maryland and New York.
For a prospective Bang Cookies franchisee, this means that you might have the option to sign only a Franchise Agreement for a single location, or you could choose to enter into a Multi-Unit Development Agreement to open multiple locations. The decision likely depends on your business goals and financial capacity. If you plan to open multiple Bang Cookies shops, the Development Agreement would be relevant.
It's important to note that if a franchisee does sign a Development Agreement, they will be subject to specific obligations, including adhering to a development schedule. Failing to meet the schedule could result in termination of the agreement and loss of future development rights. The Franchise Agreement may also be modified from time to time by Bang Cookies, and reasonable modifications and amendments to the Franchise Agreement will not alter a franchisee's obligations under the Development Agreement. Therefore, a franchisee should carefully consider the terms of both agreements and their ability to comply with the development schedule before signing a Development Agreement.