Does Bang Cookies have the discretion to modify approved and designated suppliers?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
ontent and location of the Annual System Conference. The Annual System Conference shall be for a duration of not more than three consecutive days per calendar year. Franchisee is responsible for all costs and expenses associated with Franchisee's travel to and attendance at the Annual System Conference.
- "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 Franchisor authorizes for sale by Bang Cookies Shops. Franchisor shall exclusively designate and determine the Approved Services and Products and Franchisor, in Franchisor's 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 Franchisor may make from time to time and Franchisor's 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.
- "Assignment of Telephone Numbers and Digital Media Accounts" refers to and means the Assignment of Telephone Numbers and Digital Media Accounts agreement attached to this Agreement as Exhibit 6.
"Bakery Location" refers to and means a Shop that is comprised of a Shop and Shop Facility that maintains full on-site production facilities including the on-site preparation of cookie dough and dough for baked goods. The configuration of a Bakery Location must meet Franchisor's standards and specifications as set forth and determined by Franchisor, in Franchisor's Reasonable Business Judgment. Unless otherwise expressly specified and approved by Franchisor in Schedule 1 to this Agreement, Franchisee's Shop must be established as a Bakery Location. Franchisor's specifications and determination as to the specifications and requirements for Bakery Locations shall be determined by Franchisor from time-to-time in Franchisor's Reasonable Business Judgment and as may be specified from time-to-time by Franchisor in the Operations Manual.
"Bang Cookies Shop(s)" shall have the meaning defined in the Recitals section of this Agreement and, without limitation to the Recitals section, the 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 franchisees that use and/or is/are required to use the System and/or Licensed Marks, and, including, but not limited to, the Franchised Business.
"Brand Development Fund" shall have the meaning defined and set forth in Article 9.A. of this Agreement.
"Brand Development Fund Fee" shall have the meaning defined and set forth in Article 9.A. of this Agreement.
"Business Management System" refers to and means the software, internet, web based and/or cloud based system or systems, point of sale system or systems and customer relationship management system or systems as same may be individually, or collectively, designated by Franchisor, in Franchisor's Reasonable Business Judgment, as being required for use by the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, Bang Cookies has the authority to determine and modify the Approved Services and Products that franchisees must offer. Specifically, Bang Cookies can change, modify, reduce, or supplement the products and services that the franchised business is required to sell, as well as those products and services that the franchised business is not allowed to sell. These designations are typically outlined in the operations manual, which Bang Cookies can also modify.
This means that as a Bang Cookies franchisee, you are obligated to offer and sell only those services and products that Bang Cookies has approved. Bang Cookies retains the right to alter this list, potentially impacting your business operations and revenue streams. It is important to stay informed of any changes to the Approved Services and Products, as these changes are within Bang Cookies's discretion.
The FDD also defines "System Supplies" as all merchandise, inventory, products, supplies, and goods constituting the Approved Services and Products, or used to prepare them. This definition extends to items used for marketing, sale, and delivery, including uniforms, point-of-sale displays, and packaging, as well as furniture, fixtures, and equipment designated by Bang Cookies. Bang Cookies can modify and supplement the System Supplies required for the franchise's operation, further emphasizing their control over the products and services offered.
All determinations regarding the System, including its components and any modifications or replacements, are made by Bang Cookies in their Reasonable Business Judgment. This gives Bang Cookies considerable latitude in dictating what a franchisee can and cannot offer, as well as the supplies and services they must use. Prospective franchisees should carefully consider the implications of these controls and how they might affect their business.