factual

Is the Bang Cookies Franchise Disclosure Document effective in Minnesota?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

igations to you unless a provision has been made for providing the required contractual services.

    1. If our most recent financial statements are unaudited and show a net worth of less than $100,000, you may request that we arrange for the escrow of initial investment and other funds you paid until our obligations, if any, to provide real estate, improvements, equipment, inventory, training or other items included in the franchise offering are fulfilled. At our option, a surety bond may be provided in place of escrow.
    1. THE FACT THAT THERE IS A NOTICE OF THIS OFFERING ON FILE WITH THE ATTORNEY GENERAL DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENFORCEMENT BY THE ATTORNEY GENERAL.
    1. Any questions regarding this notice should be directed to: State of Michigan, Consumer Protection Division, Attention: Franchise Bureau, 670 Law Building, Lansing, MI 48913; telephone number (517) 373-3800.

Minnesota FDD Amendment

Amendments to the Bang Cookies Franchise Disclosure Document

ADDITIONAL RISK FACTORS:

    1. THESE FRANCHISES HAVE BEEN REGISTERED UNDER THE MINNESOTA FRANCHISE ACT. REGISTRATION DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE COMMISSIONER OF COMMERCE OF MINNESOTA OR A FINDING BY THE COMMISSIONER THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING.
    1. THE MINNESOTA FRANCHISE ACT MAKES IT UNLAWFUL TO OFFER OR SELL ANY FRANCHISE IN THIS STATE WHICH IS SUBJECT TO REGISTRATION WITHOUT FIRST PROVIDING TO THE PROSPECTIVE FRANCHISEE, AT LEAST SEVEN DAYS PRIOR TO THE EXECUTION BY THE PROSPECTIVE FRANCHISEE OF ANY BINDING FRANCHISE OR OTHER AGREEMENT, OR AT LEAST SEVEN DAYS PRIOR TO THE PAYMENT OF ANY CONSIDERATION, BY THE FRANCHISEE, WHICHEVER OCCURS FIRST, A COPY OF THIS PUBLIC OFFERING STATEMENT, TOGETHER WITH A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE FRANCHISE. THIS PUBLIC OFFERING STATEMENT CONTAINS A SUMMARY ONLY OF CERTAIN MATERIAL PROVISIONS OF THE FRANCHISE AGREEMENT. THE CONTRACT OR AGREEMENT SHOULD BE REFERRED TO FOR AN UNDERSTANDING OF ALL RIGHTS AND OBLIGATIONS OF BOTH THE FRANCHISOR AND THE FRANCHISEE.

AMENDMENT OF FDD DISCLOSURES:

  • A. Item 6, "Other Fees", Not sufficient funds are governed by Minnesota Statute 604.113, which puts a cap of $30 on service charges.
  • B. Item 13, "Trademarks", Item 13 is supplemented by the addition of the following: As required by the Minnesota Franchise Act, Minn. Stat. Sec. 80C.12(g), we will reimburse you for any costs incurred by you in the defense of your right to use the marks, so long as you were using the marks in the manner authorized by us, and so long as we are timely notified of the claim and given the right to manage the defense of the claim including the right to compromise, settle or otherwise resolve the claim, and to determine whether to appeal a final determination of the claim.
  • C. Item 17, "Renewal, Termination, Transfer and Dis

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

What This Means (2024 FDD)

According to Bang Cookies's 2024 Franchise Disclosure Document, the document is effective in Minnesota, but with specific amendments to comply with Minnesota law. The FDD includes a section titled "Minnesota FDD Amendment" which indicates that certain aspects of the standard franchise agreement are modified to align with Minnesota statutes.

Specifically, the Bang Cookies FDD highlights that franchises are registered under the Minnesota Franchise Act, but this registration does not imply endorsement or approval by the Commissioner of Commerce of Minnesota. The document also states that it is unlawful to offer or sell a franchise in Minnesota without providing the prospective franchisee the FDD and related agreements at least seven days before signing any binding agreement or paying any consideration.

Several items within the FDD are amended for Minnesota. For example, Item 6, concerning "Other Fees," is modified to comply with Minnesota Statute 604.113, which caps service charges for insufficient funds at $30. Item 13, regarding "Trademarks," is supplemented to state that Bang Cookies will reimburse the franchisee for costs incurred in defending the use of the marks, provided the franchisee used the marks as authorized and Bang Cookies is notified and allowed to manage the defense. Item 17, concerning "Renewal, Termination, Transfer and Dispute Resolution," is also supplemented to comply with Minnesota law, requiring specific notice periods for termination and non-renewal, and prohibiting prospective general releases of claims against Bang Cookies that may be subject to the Minnesota Franchise Law. Additionally, the FDD notes that Minnesota law prohibits requiring litigation to be conducted outside of Minnesota and that nothing in the document can reduce any rights provided under Minnesota Statutes, Chapter 80C.

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.