What does the Bang Cookies franchisee agree to by approving the Development Schedule?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
velopment Shops that Franchisee must establish and open (a "Newly Opened Development Shop(s)") within the respective Development Period and, the minimum number of cumulative Development Shops (the "Cumulative Development Shops") that must be open and in operation as of the last day of each applicable Development Period.
The Development Schedule is set forth in the Development Information Sheet.
Franchisee agrees that, as to the Development Shops, Franchisee shall meet the requirements of the Development Schedule including, without limitation, requirements as to the number of Development Shops that must be timely developed, established, open, and in operation by Franchisee within the Development Area and as to each respective Development Period.
4.5 REASONABLENESS OF DEVELOPMENT SCHEDULE
Franchisee agrees and represents that it has conducted its own independent investigation and analysis of the prospects for the establishment of Bang Cookies Shops within the Development Area, that Franchisee approves of the Development Schedule as being reasonable and viable, and that Franchisee recognizes that failure to achieve the results described in the Development Schedule will constitute a material breach of this Agreement with time being of the essence.
SECTION 5 OTHER OBLIGATIONS OF FRANCHISEE
5.1 EXECUTION OF FRANCHISE AGREEMENTS
For each Bang Cookies Shop owned, developed and opened for business by the Franchisee in the Development Area, Franchisee must execute Franchisor's then current standard Franchise Agreement. A then current standard Franchise Agreement must be executed by the Franchisee for each and each Development Shop on or before the earlier of: (a) the date Franchisee (subject to Franchisor's approval of the Shop Location) executes a lease for the Shop Location for each respective Development Shop; (b) the date Franchisee (subject to Franchisor's approval of the Shop Location) enters into a purchase agreement for the real estate for the Shop Location for each respective Development Shop; or (c) six months prior to the date that each respective Development Shop must be open and in operation pursuant to the Development Schedule.
5.2 ROYALTY FEES AND OTHER FRANCHISE AGREEMENT FEES ACKNOWLEDGMENT
Franchisee agrees that pursuant to the terms of each respective Franchise Agreement respecting and/or concerning the Development Area and/or this Agreement, that nothing contained in this Agreement shall obviate and/or reduce Franchisees obligations as set forth in each respective Franchise Agreement including, without limitation, Franchisees obligations, respectively, to pay royalty and all other fees in accordance with each respective Franchise Agreement. Nothing contained in this Agreement shall modify, reduce or mitigate Franchisee's obligations to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, a franchisee agrees to several conditions by approving the Development Schedule. The franchisee acknowledges they have independently investigated the potential for Bang Cookies shops within their designated Development Area and find the Development Schedule reasonable and achievable. This schedule outlines specific Development Periods and the number of shops the franchisee must open within each period, including the minimum cumulative number of shops that must be operational by the end of each period. The specifics of the Development Schedule are detailed in the Development Information Sheet.
By agreeing to the Development Schedule, the franchisee commits to meeting its requirements, including the timely development, establishment, and operation of the required number of Bang Cookies shops within the Development Area during each Development Period. The franchisee understands that failing to meet the Development Schedule constitutes a material breach of the Development Agreement, with time being of the essence. This means Bang Cookies places significant importance on the franchisee adhering to the agreed-upon timeline for opening new locations.
Furthermore, the franchisee accepts the obligation to develop Bang Cookies Shops within the Development Area, provided they strictly adhere to the Development Schedule and the terms of each respective Franchise Agreement. The total number of Development Shops authorized and required is defined in the Development Information Sheet. The franchisee must open and operate new shops according to the Development Schedule for each period and maintain the minimum cumulative number of shops in operation as specified.
During the term of the agreement, if the franchisee complies with the Development Schedule and each Franchise Agreement, Bang Cookies will not open, operate, or license any third party to open or operate Bang Cookies Shops within the Development Area. However, the territory for each Development Shop will be determined by the individual Franchise Agreement for each shop, and the combined operating territories may be smaller than the entire Development Area. This grants the franchisee a limited period of exclusivity within the Development Area, contingent on meeting the development obligations.