What exhibit contains the Collateral Assignment of Lease for Bang Cookies?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| Schedule 1 | Location and Designated Territory Acknowledgment |
|---|---|
| Schedule 2 | Statement of Franchise Owners |
| Exhibit 1 | Franchise Owner and Spouse Agreement and Guaranty |
| Exhibit 2 | Confidentiality Agreement |
| Exhibit 3 | Site Selection Acknowledgment |
| Exhibit 4 | Lease Agreement Rider |
| Exhibit 5 | Collateral Assignment of Lease |
| Exhibit 6 | Assignment of Telephone Numbers and Digital Media Accounts |
| Exhibit 7 | ACH Authorization Form |
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the Collateral Assignment of Lease is found in Exhibit 5. This exhibit is part of the schedules and exhibits attached to the Franchise Agreement.
For a prospective Bang Cookies franchisee, the Collateral Assignment of Lease is a crucial document. It essentially allows Bang Cookies to assume the franchisee's lease obligations under certain conditions, such as a default on the franchise agreement. This provides Bang Cookies with a mechanism to maintain control over the location, which is vital for business continuity and brand consistency.
Franchisees should carefully review Exhibit 5 with their legal counsel to fully understand the circumstances under which the lease can be assigned and the potential implications for their business. Understanding the terms of the Collateral Assignment of Lease is essential for assessing the risks and obligations associated with the Bang Cookies franchise.