What must a Bang Cookies franchisee do with ideas and suggestions for improvements to the Business Management System?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
11.F. OWNERSHIP OF INNOVATIONS, IMPROVEMENTS AND INFORMATION
Franchisee agrees that with regard to the Franchised Business, all customer lists, including the contents and information contained in all customer lists, constitute Confidential Information and an asset of Franchisor whether or not such information was supplied by Franchisor. During the Term, 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, any Owner, and/or Franchisee's affiliates, officers, directors, shareholders, partners, agents, members, representatives, independent contractors, servants and employees relating to the development and operation of Bang Cookies Shops and the System. Franchisee hereby assigns to Franchisor, and Franchisee agrees to procure an assignment of any such ideas, concepts, methods, and products that Franchisee is required to disclose to Franchisor under this Article 11.F. from each Owner and Franchisee's affiliates, officers, directors, shareholders, partners, agents, members, representatives, independent contractors, servants and employees. Franchisor shall have no obligation to tender any lump sum payment, on-going payments, or any other consideration to Franchisee, any Owner, each Owner and Franchisee's affiliates, officers, directors, shareholders, partners, agents, members, representatives, independent contractors, servants and employees with respect to any such idea, concept, method, technique or product. Franchisee agrees that Franchisee shall not use, or allow any other person or entity to use, any such concept, method, technique, 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' 2024 Franchise Disclosure Document, franchisees are required to disclose any ideas, concepts, methods, or products they conceive or develop related to the operation of Bang Cookies shops to the franchisor. This includes anything related to the Business Management System. The franchisee must also formally assign these innovations to Bang Cookies. This obligation extends not only to the franchisee but also to their owners, affiliates, officers, directors, shareholders, partners, agents, members, representatives, independent contractors, servants, and employees, meaning the franchisee is responsible for ensuring these parties also assign their innovations to Bang Cookies.
Bang Cookies is not obligated to provide any compensation or payments for these ideas, concepts, methods, techniques, or products. Furthermore, the franchisee is prohibited from using or allowing anyone else to use these innovations without obtaining prior written approval from Bang Cookies. This ensures that all improvements and innovations become the property of the franchisor and are implemented at their discretion.
This requirement is fairly standard in franchising, as it allows the franchisor to maintain consistency and control over the brand and system. However, it's important for prospective Bang Cookies franchisees to understand that any improvements they develop for the business become the property of the franchisor without compensation. Franchisees should consider this when deciding whether to invest in the franchise and how they approach innovation within their business.