What must a Bang Cookies franchisee pay to renew their franchise agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
(4) Franchisee must update and/or agree to update the condition, appearance and functionality of Franchisee's Shop Facility and Franchisee's Shop Location and to otherwise modify Franchisee's Shop Facility and Franchisee's Shop Location in compliance with Franchisor's specifications and standards then applicable for new Bang Cookies Shops;
(5) Franchisee pays the Renewal Fee and Franchisee agrees to, signs, and delivers to Franchisor, within 30 days of the date of delivery by Franchisor to Franchisee, Franchisor's then current form Shop Franchise Agreement for the Renewal Term (the "Renewal Franchise Agreement");
(6) Franchisee's Owners and their Spouses, respectively, must agree to, sign, and deliver to Franchisor, within 30 days of the date of delivery by Franchisor to Franchisee, Franchisor's then current individual guaranty agreements, and, thereby, among other things, individually and jointly guarantee the full and complete performance of the Renewal Franchise Agreement including, but not limited to, payment obligations, non-compete obligations, and restrictive covenants (the "Renewal Ancillary Agreements");
(7) Franchisee and the Owners must, prior to the Renewal Term, undertake and complete, to Franchisor's satisfaction, such additional training, if any, as designated and determined by Franchisor in Franchisor's Reasonable Business Judgment; and
(8) Franchisee and the Owners must agree to, sign, and deliver to Franchisor, within 30 days of the date of delivery by Franchisor to Franchisee, Franchisor's then current form of general release whereby Franchisee and Franchisee's Owners shall each fully release and discharge Franchisor, Franchisor's affiliates and it's officers, directors, shareholders, partners, agents, representatives, independent contractors, servants, employees, successors and assigns from any and all claims, causes of action, and suits arising from and/or related to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, a franchisee must meet several conditions to renew their franchise agreement. These conditions include updating the shop to meet current brand standards, paying a renewal fee, and signing the current franchise agreement for the renewal term. The franchisee's owners and their spouses must also sign individual guaranty agreements to guarantee performance of the renewal agreement.
Additionally, the franchisee and owners must complete any additional training that Bang Cookies deems necessary. They must also sign a general release, discharging Bang Cookies from any claims related to the original agreement. The FDD does not specify the exact dollar amount of the renewal fee, but it does state that the franchisee must pay it to renew the franchise agreement.
In summary, while the FDD outlines several requirements for renewal, the specific amount of the renewal fee is not disclosed in this document. A prospective Bang Cookies franchisee should inquire directly with the franchisor to determine the exact renewal fee and understand all associated costs and obligations.