Does the Bang Cookies franchisee agree to procure from their owners, affiliates, and employees the assignment of any ideas that the franchisee is required to disclose to the franchisor?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that with regard to the Franchised Business all customer lists and their contents and information represent Confidential Information and constitute an asset of Franchisor whether or not such information was supplied by Franchisor. During the Term of this Agreement and in connection with the development, establishment, marketing, promotion and operation of the Franchised Business, Franchisee shall disclose to Franchisor all of Franchisee's ideas, concepts, methods and products conceived or developed by Franchisee and Franchisee's affiliates, Owners, agents, and employees relating to the development and operation of Bang Cookies Shops. Franchisee hereby assigns to Franchisor and Franchisee agrees to procure from Franchisee's Owners, affiliates and employees assignment of any such ideas, concepts, methods, and products that Franchisee is required to disclose to Franchisor under this Article 6.I. Franchisor shall have no obligation to make any lump sum or on-going payments to Franchisee or Franchisee's Owners, affiliates or employees with respect to any such idea, concept, method, technique or product. Franchisee agrees that Franchisee will not use nor will Franchisee allow any other person or entity to use any such concept, method or product without obtaining Franchisor's prior written approval.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, franchisees must assign to Bang Cookies any ideas, concepts, methods, and products related to the development and operation of Bang Cookies shops. This requirement extends beyond the franchisee to include their owners, affiliates, and employees. The franchisee is responsible for securing the assignment of these innovations from these related parties.
Bang Cookies is not obligated to provide any payment or consideration for these assigned ideas, concepts, methods, or products. This means that while Bang Cookies benefits from any innovations developed within the franchise network, the individuals or entities responsible for those innovations do not receive direct compensation.
Furthermore, the franchisee is prohibited from using or allowing others to use any such concept, method, or product without obtaining prior written approval from Bang Cookies. This ensures that Bang Cookies maintains control over the use and dissemination of any innovations developed within the franchise system, protecting its intellectual property and maintaining uniformity across all franchise locations.