In the Bang Cookies Franchise Agreement, what does 'consideration' refer to in the context of the agreement?

According to Bang Cookies' 2024 Franchise Disclosure Document, 'consideration' in the context of the franchise agreement refers to the mutual undertakings and commitments made by both the franchisor and the franchisee. This means that both parties are agreeing to certain responsibilities and obligations as part of the agreement.

For the franchisee, this typically involves paying fees, adhering to the Bang Cookies' operational standards, and developing and operating the shop according to the franchisor's system. For Bang Cookies, this includes granting the franchisee the right to use the Bang Cookies system, providing support and training, and upholding the standards of the franchise system.

The agreement states that the parties agree to the terms in consideration of these mutual undertakings and commitments. This is a standard legal term ensuring that there is a bargained-for exchange, meaning each party receives something of value in exchange for their promises. This mutual exchange is essential for the enforceability of the franchise agreement.