Does the Bang Cookies franchisee have permission to establish digital media accounts concerning the franchised business?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that Digital Media must be approved by Franchisor prior to publication or use in any form. Digital Media and Published Content that is approved by Franchisor or that otherwise is acceptable to Franchisor as meeting Franchisor's standards shall be owned by Franchisor. As between Franchisor and Franchisee, any and all interest and right in or to the Digital Media and/or Published Content shall, at all times, be and is the exclusive property of Franchisor both during the Term of this Agreement and upon the expiration or termination of this Agreement. Franchisee agrees that the System Website and all improvements and modifications made to the System Website, Digital Media, and Published Content is and shall be the exclusive property of Franchisor. During the Term of this Agreement and subject to Franchisee's compliance with the terms and conditions of this Agreement, the System Website, shall include information related to the Franchised Business as shall be determined and designated by Franchisor in Franchisor's Reasonable Judgment.
In the event of the termination of this Agreement, for any reason, that the accounts related to all telephone numbers associated with the Franchised Business and all rights in and to the telephone numbers associated with the Franchised Business, shall, at Franchisor's election, be transferred to Franchisor.
Without limitation to the foregoing, Franchisee shall, upon the request of Franchisor, execute and deliver to Franchisor the Assignment of Telephone Numbers and Digital Media Accounts attached to this Agreement as Exhibit 6. Upon the request of Franchisor, Franchisee shall execute, update, and/or re-execute the Assignment of Telephone Numbers and Digital Media agreement upon the request of Franchisor. As between Franchisor and all third parties, Franchisee does hereby represent and acknowledge that such third party is authorized to rely on the Assignment of Telephone Numbers and Digital Media agreement, irrespective of any dispute and/or controversy between Franchisor and Franchisee and irrespective of any contrary instructions of Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, franchisees are permitted to use digital media for their franchised business, but with significant restrictions. "Digital Media" is defined broadly to include websites, social media platforms like Facebook, LinkedIn, Twitter, Pinterest, Instagram, SnapChat, and YouTube, and other online directories.
Bang Cookies requires that all Digital Media used by the franchisee must be pre-approved by the franchisor before publication or use. Once approved, the franchisor owns the Digital Media and published content. This means that while franchisees can engage in digital marketing, Bang Cookies retains control over the content and branding.
Upon termination of the franchise agreement, Bang Cookies has the option to take control of all telephone numbers and associated digital media accounts related to the franchised business. The franchisee is required to sign an "Assignment of Telephone Numbers and Digital Media Accounts" agreement, which allows Bang Cookies to manage these assets. This assignment can be relied upon by third parties, regardless of any disputes between the franchisor and franchisee. This ensures that Bang Cookies maintains consistent brand control and customer communication even after a franchise agreement ends.