To whom must a Bang Cookies franchisee report any cause of action or claim?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
(4) Franchisee must immediately notify Franchisor in writing of any of the following concerning Franchisee, the Franchised Business, Franchisee's Shop Location and/or Franchisee's Shop Facility: (a) any cause of action, claim, lawsuit, proceeding, and investigation; (b) issuance of any order, writ, injunction, award, and/or decree by any court, agency, or other governmental entity; and (c) any notice of violation of any law, ordinance, code, permit, or regulation.
(p) Franchisee fails, upon receiving actual or constructive notice, shall: (1) immediately notify Franchisor of any known breach of the Confidentiality Agreement by any person or entity; (2) immediately notify Franchisor of facts and information that would cause a reasonable person
Franchisor shall indemnify, defend, and hold Franchisee and Franchisee's officers, directors, shareholders, members, owners, partners, agents, representatives, independent contractors, employees, assigns and successors (the "Franchisee Indemnified Parties") harmless from all losses, expenses, claims, causes of action, lawsuits, liabilities, taxes, costs, demands, proceedings, investigation, hearing, and/or damages solely arising out of, or solely relating to, Franchisor's gross negligence in the operation of Franchisee's Bang Cookies Shop that was the direct cause of any such loss, expense, liability or damage provided Franchisee immediately notifies Franchisor of such claim, cause of action, lawsuit, demand, proceeding, investigation or hearing
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, a franchisee must immediately notify the franchisor in writing of any cause of action, claim, lawsuit, proceeding, or investigation concerning the franchisee, the franchised business, the shop location, or the shop facility. This obligation also extends to the issuance of any order, writ, injunction, award, or decree by any court, agency, or other governmental entity, as well as any notice of violation of any law, ordinance, code, permit, or regulation. This requirement ensures that Bang Cookies is promptly informed of any legal or regulatory issues that could affect the franchise or the brand.
This notification requirement is a standard practice in franchising, allowing the franchisor to take appropriate action to protect its brand and system. For a Bang Cookies franchisee, this means maintaining open communication with the franchisor regarding any potential legal or regulatory issues. Failure to promptly report such matters could result in a breach of the franchise agreement and potential penalties.
Furthermore, the FDD also states that the franchisee must notify Bang Cookies of any known breach of the Confidentiality Agreement by any person or entity. They must also report any facts or information that would cause a reasonable person to believe that a person or entity violated the Confidentiality Agreement and/or is in the process of violating the Confidentiality Agreement. The franchisee is also expected to take reasonable steps, including notifying Bang Cookies and consulting with their legal counsel, to prevent any person or entity from violating the terms of the Confidentiality Agreement and/or otherwise publicly disseminating Confidential Information.
In the event that the Franchisor's gross negligence in the operation of Franchisee's Bang Cookies Shop was the direct cause of any loss, expense, liability or damage, the franchisee must immediately notify Bang Cookies of such claim, cause of action, lawsuit, demand, proceeding, investigation or hearing.