Must the Bang Cookies franchised business be operated exclusively from a shop facility?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
rticle 5.B. of this Agreement.
"Effective Date" shall be the date set forth, defined and referred to in the first paragraph of this Agreement.
"Franchise Owner and Spouse Agreement and Guaranty" refers to and means the form of "Franchise Owner and Spouse Agreement and Guaranty" attached to this Agreement as Exhibit 1.
"Franchised Business" refers to and means the Bang Cookies Shop that Franchisee is required to develop, maintain and operate as part of the System and in accordance with the terms, conditions and obligations set forth in this Agreement and the operations manual.
"Franchisee's Shop Facility" refers to and means the Shop Facility from which Franchisee develops, operates and manages the Franchised Business. Franchisee's Shop Facility must be located at a Shop Lo
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the franchised business must be operated from an approved shop facility. The FDD defines "Franchised Business" as the Bang Cookies Shop that the franchisee is required to develop, maintain, and operate according to the franchise agreement and operations manual. The "Franchisee's Shop Facility" is the specific shop facility from which the franchisee operates and manages the Bang Cookies business, located at a "Shop Location" approved by Bang Cookies.
Bang Cookies requires that the shop location be approved, and the franchisee must operate from this fixed location. The franchisee needs to get written consent from Bang Cookies if they want to relocate the franchised business, shop location, and shop facility. Bang Cookies may refuse consent based on their reasonable business judgment. If Bang Cookies does consent to relocation, they may impose requirements such as meeting current standards for shop locations and facilities, construction according to current standards, location within the designated territory, and not being in close proximity to other Bang Cookies shops.
The Bang Cookies franchise agreement grants the franchisee the right and obligation to develop and operate one Bang Cookies Shop in conformity with the System and the agreement from a single fixed shop location, selected by the franchisee but requiring Bang Cookies' approval. Unless authorized in Schedule 1 of the agreement, the Bang Cookies Shop must be established as a Bakery Location.
This means a Bang Cookies franchisee cannot operate from a mobile unit, home-based kitchen, or any other type of facility that is not a fixed, approved shop location. This is a fairly standard practice in the food franchise industry, as it allows the franchisor to maintain quality control and brand consistency.