What is a Bang Cookies franchisee obligated to pay on a weekly basis?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
REEMENTS**
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. The only fee and right contained in the Franchise Agreement that is modified by this Agreement is the fixed one-time initial franchise fee paid by Franchisee to Franchisor at the time of signing the Franchise Agreement, as such initial franchise fee is set forth and defined in Section 4.2 of this Agreement as to the Development Shops.
5.3 MODIFICATIONS TO FRANCHISE AGREEMENT
Franchisee agrees that what constitutes Franchisor's then current Franchise Agreement shall be determined by Franchisor, in Franchisor's exclusive discretion and that, among other things, the Franchise Agreement may be modified from time to time by Franchisor and that reasonable modification and amendments to the Franchise Agreement will not alter Franchisee's obligations under this Agreement.
5.4 COMPLIANCE WITH FRANCHISE AGREEMENTS
Franchisee will operate the Development Shops and all other Bang Cookies Shops in strict compliance the terms and conditions of each respective Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
Based on the 2024 Bang Cookies Franchise Disclosure Document, franchisees are obligated to pay royalty fees and advertising contributions, although the specific amounts and payment schedules are not detailed within the provided excerpts. Item 5.2 acknowledges the franchisee's obligation to pay royalty and other fees as outlined in their respective Franchise Agreement. Item 7.19 further emphasizes that franchisees cannot withhold any payments, including Royalty Fees and Advertising Contributions, due to alleged nonperformance or breach by Bang Cookies.
While the FDD excerpts confirm the existence of these payment obligations, they do not specify the exact weekly amounts or the calculation methods for royalty fees or advertising contributions. These details are likely outlined in the Franchise Agreement itself, which each franchisee must execute. The excerpts do mention that the Franchise Agreement may be modified from time to time by Bang Cookies.
Therefore, a prospective Bang Cookies franchisee should carefully review the Franchise Agreement to understand the precise weekly payment obligations, including the royalty fee percentage, advertising contribution requirements, and any other recurring fees. It would also be prudent to inquire about any potential modifications to these fees and the factors that could influence them.