factual

Where in the Bang Cookies FDD can I find information about the Development Grant and Development Obligations?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

2.1 DEVELOPMENT GRANT AND DEVELOPMENT OBLIGATIONS

Franchisor grants 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.

Franchisee agrees that Franchisee must: (a) open and commence the operations of each new Development Shop in accordance with the Development Schedule for each respective Development Period, as set forth in this Agreement; and (b) maintain in operation the minimum cumulative number of Development Shops in accordance with the Development Schedule for each respective Development Period. Franchisee agrees that "time is of the essence" with respect to Franchisee's development obligations under this Agreement, and that Franchisee's failure to comply with the Development Schedule is grounds for immediate termination of this Agreement and, any future development rights granted under this Agreement.

During the Term of this Agreement, provided that Franchisee is in compliance with the terms and provisions of this Agreement including, but not limited to, the Development Schedule, and each respective Franchise Agreement, Franchisor will not open, operate, or license any third party the right to open or operate Bang Cookies Shops within the Development Area. Franchisee agrees that the designated territory for each Development Shop shall be determined by the Franchise Agreement for each respective Development Shops and that, in aggregate, the operating territories for Franchisee's Development Shops may be smaller than the Development Area.

Source: Item 23 — RECEIPTS (FDD pages 56–245)

What This Means (2024 FDD)

According to Bang Cookies's 2024 Franchise Disclosure Document, information regarding the Development Grant and Development Obligations can be found in Section 2.1, titled "DEVELOPMENT GRANT AND DEVELOPMENT OBLIGATIONS." This section outlines the rights and obligations of the franchisee to develop Bang Cookies shops within a specific Development Area, according to a defined Development Schedule. The total number of shops required for development is detailed in the Development Information Sheet, attached as Schedule A to the agreement.

The Development Area, which defines the geographic scope for development, is also specified in the Development Information Sheet. Franchisees must adhere to the Development Schedule, opening and operating new shops within the set timeframes. Failure to meet these obligations can result in the termination of the agreement and any future development rights. Bang Cookies emphasizes that time is of the essence in meeting these development obligations.

During the agreement term, Bang Cookies will not open, operate, or license third parties to open or operate shops within the Development Area, provided the franchisee complies with the agreement terms, including the Development Schedule. The territory for each Development Shop is determined by the individual Franchise Agreement, and the combined operating territories for all shops may be smaller than the overall Development Area. This section clearly defines the expectations and protected rights for franchisees undertaking multi-unit development with Bang Cookies.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.