Can a Bang Cookies franchisee face competition from other franchisees?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, during the term of the Franchise Agreement, provided that you are not in default of your obligations to us or our affiliates and except as to our Reserved Rights set forth below, we will not establish or open and we will not grant another franchisee the right to establish or open a Bang Cookies Shop at a Shop Location within your Designated Territory.
Source: Item 12 — TERRITORY (FDD pages 36–38)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, a franchisee may face competition from other franchisees. The FDD states that the franchisee will not receive an exclusive territory. This means that other franchisees, outlets owned by Bang Cookies, or other channels of distribution or competitive brands controlled by Bang Cookies could potentially operate in the same area.
However, Bang Cookies states that during the term of the Franchise Agreement, provided the franchisee is not in default of their obligations, Bang Cookies will not establish or open, nor grant another franchisee the right to establish or open, a Bang Cookies Shop at a Shop Location within the franchisee's Designated Territory. This provides some limited territorial protection, but it is contingent on the franchisee remaining in compliance with the agreement.
Bang Cookies also reserves the right to use other channels of distribution, such as the internet, to make sales within the franchisee's territory. They do not pay any compensation to the franchisee for soliciting or accepting orders from inside the franchisee's territory. This means that while another physical franchise location may not be opened in the franchisee's territory, Bang Cookies can still directly compete for customers in that area through online sales or other methods. Additionally, Bang Cookies retains significant rights to operate or franchise businesses under different trademarks, or through alternative channels of distribution, even if they compete with the franchisee's business.