Does the Bang Cookies franchise agreement specify who the franchisee must assign rights to regarding any Improvement developed?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that with regard to the Franchised Business all customer lists and their contents and information represent Confidential Information and constitute an asset of Franchisor whether or not such information was supplied by Franchisor. During the Term of this Agreement and in connection with the development, establishment, marketing, promotion and operation of the Franchised Business, Franchisee shall disclose to Franchisor all of Franchisee's ideas, concepts, methods and products conceived or developed by Franchisee and Franchisee's affiliates, Owners, agents, and employees relating to the development and operation of Bang Cookies Shops. Franchisee hereby assigns to Franchisor and Franchisee agrees to procure from Franchisee's Owners, affiliates and employees assignment of any such ideas, concepts, methods, and products that Franchisee is required to disclose to Franchisor under this Article 6.I. Franchisor shall have no obligation to make any lump sum or on-going payments to Franchisee or Franchisee's Owners, affiliates or employees with respect to any such idea, concept, method, technique or product. Franchisee agrees that Franchisee will not use nor will Franchisee allow any other person or entity to use any such concept, method or product without obtaining Franchisor's prior written approval.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the franchisee is required to assign ownership of any innovations, improvements, and information developed in connection with the franchised business to Bang Cookies. This includes ideas, concepts, methods, and products conceived or developed by the franchisee, their owners, affiliates, agents, and employees relating to the development and operation of Bang Cookies shops.
The franchisee must disclose all such developments to Bang Cookies and ensure that their owners, affiliates, and employees also assign their rights to these developments to Bang Cookies. This assignment ensures that Bang Cookies maintains control over any new ideas or improvements related to the brand and its operations.
Bang Cookies is not obligated to provide any payment or compensation to the franchisee or their related parties for these assigned developments. Furthermore, the franchisee is prohibited from using or allowing others to use any such concept, method, or product without obtaining Bang Cookies's prior written approval. This clause emphasizes Bang Cookies's ownership and control over any innovations arising from the franchise operations.