What is the 'Development Area' for a Bang Cookies franchise?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
rants to Franchisee the right, and Franchisee accepts the right and undertakes the obligation to develop Bang Cookies Shops, each to be developed, opened and operated by Franchisee within the Development Area (each, a "Development Shop"), provided that Franchisee develops, opens and operates such Development Shops in strict accordance with the Development Schedule, and, in accordance with the terms and provisions of each respective Franchise Agreement.
The aggregate number of Development Shops (including the First Development Shop) (collectively, referred to as the "Total Development Shops") that are authorized by this Agreement and required for development, subject to the terms of this Agreement and each respective Franchise Agreement, is set forth and defined in the Development Information Sheet.
The Development Area is and shall constitute the geographic area set forth and identified in the Development Information Sheet.
The Development Information Sheet is attached as Schedule A to this Agreement and is incorporated into and made a part of this Agreement. To be effective the Development Information Sheet must be completed and signed by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the Development Area is a specific geographic area where the franchisee has the right and obligation to develop and operate Bang Cookies shops, according to a set Development Schedule. The specifics of the Development Area, including its geographic boundaries, are detailed in the Development Information Sheet, which is included as Schedule A to the Multi-Unit Development Agreement.
The franchisee is required to adhere strictly to the Development Schedule, opening and operating the agreed-upon number of Bang Cookies shops within the defined Development Area and specified timeframes. Failure to meet these development obligations can result in the termination of the Development Agreement and the loss of any future development rights.
Bang Cookies agrees not to open, operate, or license any third party to open or operate Bang Cookies shops within the Development Area, provided the franchisee remains in compliance with the terms of the Development Agreement and the individual Franchise Agreements for each shop. However, the territory for each individual Bang Cookies shop will be determined by the Franchise Agreement for that shop, and the combined territories of all shops may be smaller than the overall Development Area. The Development Information Sheet is effective as of the effective date of the Bang Cookies Multi-Unit Development Agreement and must be completed and signed by Bang Cookies.