What is the 'Franchised Business' referring to in the Bang Cookies FDD?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
We refer to Shops in our System as "Shops" and we refer to the Shop that you will develop and operate as either "your Shop" or the "Franchised Business". You may enter into a Franchise Agreement in the form attached to this Disclosure Document as Exhibit E (the "Franchise Agreement") to develop and operate a Shop from a single Shop Location. Under the Franchise Agreement you will develop and operate your Shop in conformity with the requirements of our System. The System includes Approved Services and Products that we currently designate and that we may modify, add to or discontinue from time to time, and our specifications, methods and procedures for marketing, selling, offering, and providing the Approved Services and Products. The System also features and requires, as designated by us, your exclusive purchase, use, and maintenance of certain merchandise, inventory, products, supplies, and goods constituting or comprising the Approved Services and Products offered for sale and/or the services provided and further includes displays, equipment, furniture, and fixtures designated by us (collectively, the "System Supplies"). You must operate your Shop in conformity with the specifications, procedures, criteria and requirements that we designate in our confidential operations manual and other proprietary manuals that we may designate and loan to you and, as we may from time to time supplement and modify other manuals and communications (collectively, the "Manuals").
Because our Shops offer homemade cookies, cakes, and other baked good menu items, the initial Shop that you establish must be a bakery location that includes full production facilities, including a convection oven and kitchen capable of producing, on-site, dough for all of our homemade cookies and most of our baked menu items (a "Bakery Location"). If you maintain and operate a Bakery Location and you elect to establish
and operate additional Bang Cookie Shops located within a close geographic range to your Bakery Location, up to two additional Shops, depending on the production capacity of your Bakery Location may, if approved by us, be established as satellite locations (each, a "Satellite Location") each, with a smaller kitchen, preparation, and baking area that is limited to baking cookies and other baked goods that are baked from dough and other baking items that are partially prepared at your Location and delivered to your Satellite Location. A Bakery Location must be located at a retail location comprising approximately 1,500 to 2,500 square feet with approximately 600 to 700 square feet dedicated to your kitchen and baking facilities. A Satellite Location must be located at a retail location comprising approximately 800 to 1,000 square feet with approximately 600 to 800 square feet dedicated to your limited kitchen preparation and baking facilities.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the 'Franchised Business' refers to the Bang Cookies Shop that a franchisee will develop and operate. This shop is a cookie shop that bakes and sells giant, soft-baked, organic cookies and baked goods, along with other approved products and services, from a fixed location within a designated territory. The operation of the Franchised Business must align with the Bang Cookies system.
The Bang Cookies system is identified by the brand's trademarks, logos, and other commercial symbols. Franchisees must prominently display these licensed marks and adhere to the brand's trade dress. The system also includes specifications, methods, and procedures for marketing, selling, and providing approved services and products. Franchisees are required to exclusively purchase, use, and maintain certain merchandise, inventory, products, supplies, and goods that constitute the approved services and products.
Bang Cookies shops can be either a Bakery Location or a Satellite Location. A Bakery Location includes full production facilities, with a convection oven and kitchen for on-site dough production. A Satellite Location has a smaller kitchen and primarily bakes cookies and goods from dough partially prepared at a Bakery Location. The FDD specifies size requirements for both types of locations: a Bakery Location should be 1,500 to 2,500 square feet, with 600 to 700 square feet for the kitchen, while a Satellite Location should be 800 to 1,000 square feet, with 600 to 800 square feet for the kitchen. Franchisees must obtain written approval from Bang Cookies to operate a Satellite Location, and there is no guarantee that additional shops can be established as Satellite Locations without a multi-unit development agreement.