Is the Bang Cookies Franchise Disclosure Document effective in California?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
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This Development Information Sheet shall be effective as of the Effective Date of the Bang Cookies Multi-Unit Development Agreement.
Bang Cookies Franchise LLC Name and Title (please print) Name (please print) Dated Dated Name (please print) Dated
FRANCHISE DISCLOSURE DOCUMENT EXHIBIT G LIST OF FRANCHISEES
There are no Franchisees to report.
BANG COOKIES EXHIBIT H
FRANCHISE DISCLOSURE DOCUMENT EXHIBIT H
LIST OF FRANCHISEES THAT HAVE LEFT THE SYSTEM
There are no franchisees to report.
FRANCHISE DISCLOSURE DOCUMENT EXHIBIT I
STATE SPECIFIC ADDENDA
California FDD Amendment
Amendments to the Bang Cookies Franchise Disclosure Document
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- Item 17 "Renewal, Termination, Transfer and Dispute Resolution: The Franchise Relationship," is supplemented by the addition of the following:
- A. THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
- B. The franchisor, any person or franchise broker in Item 2 of the FDD is not subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq., suspending or expelling such persons from membership in such association or exchange.
- C. California Business and Professions Code Sections 20000 through 20043 establish the rights of the franchisee concerning termination, transfer, or non-renewal of a franchise. If the Franchise Agreement contains a provision that is inconsistent with the law, the law will control.
- D. The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law. (11 U.S.C.A. Sec. 101 et seq.).
- E. The Franchise Agreement contains a covenant not to compete, which extends beyond the termination of the franchise. This provision may not be enforceable under California law.
- F. The Franchise Agreement requires binding arbitration. The arbitration will occur in New Jersey with the costs being borne by the franchisee and franchisor.
Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5 Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a Franchise Agreement restricting venue to a forum outside the State of California.
- G. The Franchise Agreement requires application of the laws of the State of New Jersey. This provision may not be enforceable under California law.
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Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
Yes, the Bang Cookies 2024 Franchise Disclosure Document (FDD) includes a specific addendum for California, indicating that the franchise is actively registered and making legally required disclosures for that state. This California FDD Amendment addresses several important legal considerations for prospective franchisees in California.
Specifically, the addendum highlights key aspects of California franchise law, such as the requirement to provide all proposed agreements with the disclosure document, and the franchisee's rights regarding termination, transfer, or non-renewal as established by the California Business and Professions Code. It also points out potential conflicts between the standard Franchise Agreement and California law, particularly concerning termination upon bankruptcy and covenants not to compete. These clarifications are essential for ensuring that franchisees understand their rights and obligations under California law.
Furthermore, the addendum addresses issues such as waivers of rights, application of New Jersey law, and interest rates, ensuring compliance with California regulations. It also includes a disclaimer about the Bang Cookies website not being reviewed or approved by the California Department of Corporations and provides contact information for complaints. This level of detail and attention to state-specific legal requirements demonstrates that Bang Cookies is actively working to comply with California franchise law, making the FDD effective in the state.