Who exclusively benefits from all usage of the Licensed Marks and System by the Bang Cookies franchisee?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
2.D. RESERVATION OF RIGHTS
Franchisor on behalf of itself, its affiliates and its assigns retains all rights, on any and all terms and conditions that Franchisor deems advisable and without any compensation or consideration to Franchisee to engage in the following activities (the "Reserved Rights"): (a) operate and grant to others the right to operate a Franchised Business, Bang Cookies Shop and/or other shops using the System and Licensed Marks at locations outside Franchisee's Designated Territory; (b) acquire or merge with or otherwise affiliate with one or more businesses of any kind, including businesses that are Competitive Businesses, and after such acquisition, merger or affiliation to own and operate and to franchise or license others to own and operate and to continue to own and operate such businesses, including Competitive Businesses (but not utilizing the Licensed Marks) within Franchisee's Designated Territory; (c) be acquired by or merge with or otherwise affiliate with one or more businesses of any kind, including businesses that are Competitive Businesses, even if such business or businesses presently or, in the future, own and operate and franchise or license others to own and operate such businesses, including Competitive Businesses (but not utilizing the Licensed Marks) within Franchisee's Designated Territory; (d) use the Licensed Marks and System to distribute the Approved Services and Products or products and services similar to the Approved Services and Products in Alternative Channels of Distribution within or outside Franchisee's Designated Territory; (e) operate and grant to others the right to operate a Bang Cookies Shop at Captive Markets, both within and outside Franchisee's Designated Territory; and (f) use the Licensed Marks and System and to license others to use the Licensed Marks and System to engage in all other activities not expressly prohibited by this Agreement. Franchisor reserves the right to offer Franchisee(s) the right to service and or be an approved supplier of other franchisees in and outside the Territory, provided, that Franchisee agreed to the Franchisor provided terms.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
Based on the 2024 Bang Cookies Franchise Disclosure Document, Bang Cookies, its affiliates, and assigns retain all rights to the Licensed Marks and System. This means Bang Cookies reserves the right to use the Licensed Marks and System to operate or franchise others to operate Bang Cookies shops outside a franchisee's designated territory. They can also use the marks and system in alternative channels of distribution.
Bang Cookies retains these rights without providing any compensation or consideration to the franchisee. This reservation of rights allows Bang Cookies to expand and modify its business operations as it sees fit, which could include offering the right to service or be an approved supplier to other franchisees.
For a prospective Bang Cookies franchisee, this means that while they are granted a license to operate a shop within a certain territory, Bang Cookies maintains control over the brand's broader usage. The franchisee's rights to the Licensed Marks and System are non-exclusive and subordinate to the rights Bang Cookies reserves for itself. This is a common practice in franchising, where the franchisor needs to maintain brand consistency and have the flexibility to adapt to market changes.