factual

Is the Bang Cookies Franchise Disclosure Document effective in Michigan?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

re Law or the Indiana Deceptive Franchise Practices Act.

Maryland FDD Amendment

Amendments to the Bang Cookies Franchise Disclosure Document

Item 17, "Renewal, Termination, Transfer and Dispute Resolution," is supplemented, by the addition of the following:

  • A. The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
  • B. A Franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
  • C. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
  • D. The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101, et seq.).

Michigan FDD Amendment

Amendments to the Bang Cookies Franchise Disclosure Document

    1. THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST YOU.
    • A. A prohibition of your right to join an association of Franchisees.
    • B. A requirement that you assent to a release, assignment, novation, waiver or estoppel that deprives you of rights and protections provided in this act. This shall not preclude you, after entering into a Franchise Agreement, from settling any and all claims.
    • C. A provision that permits us to terminate a franchise before the expiration of this term except for good cause. Good cause shall include your failure to comply with any lawful provision of the Franchise Agreement and to cure the failure after being given written notice of the failure and a reasonable opportunity, which in no event need be more than 30 days, to cure the failure.
    • D. A provision that permits us to refuse to renew a franchise without fairly compensating you by repurchase or other means for the fair market value at the time of expiration of your inventory, supplies, equipment, fixtures and furnishings. Personalized materials that have no value to us and inventory, supplies, equipment, fixtures and furnishings not reasonably required in the conduct of the franchise business are not subject to compensation. This subsection applies only if: (a) the term of the franchise is less than five years, and (b) you are prohibited by the Franchise Agreement or other agreement from continuing to conduct substantially the same business under another trademark, service mark, trade name, logotype, advertising or other commercial symbol in the same area subsequent to the expiration of the franchise or you do not receive at least six months advance notice of our intent not to renew the franchise.

  • E. A provision that permits us to refuse to renew a franchise on terms generally available to other Franchisees of the same class or type under similar circumstances. This section does not require a renewal provision.
  • F.

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

What This Means (2024 FDD)

According to Bang Cookies' 2024 Franchise Disclosure Document, the document includes a Michigan FDD Amendment, indicating that the FDD is designed to be effective in Michigan. The amendment outlines specific provisions that are prohibited within franchise documents in the state of Michigan, and states that these provisions are void and cannot be enforced against the franchisee.

The prohibited provisions cover a range of franchisee rights and protections. These include the right to join a franchisee association, protection against waivers of rights and protections provided by law, stipulations regarding termination of the franchise agreement, and conditions related to the renewal of the franchise. The amendment also addresses litigation locations and ensures that franchisees are not forced to conduct litigation outside of Michigan.

Furthermore, the Bang Cookies FDD amendment includes contact information for the State of Michigan Consumer Protection Division, specifically the Franchise Bureau, should any questions arise regarding the notice. This suggests that Bang Cookies has taken the necessary steps to ensure compliance with Michigan franchise laws, making the FDD effective in the state, while also informing prospective franchisees of their rights and how to seek assistance if needed.

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.