Can the Bang Cookies franchisee select their shop location?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
5.5 SITE SELECTION
Franchisee will be solely responsible for selecting the site(s) for the Franchisee's Shop Locations. In accordance with the terms and conditions of each respective Franchise Agreement, Franchisee must obtain Franchisor's prior written approval as to each potential Shop Location selected by Franchisee. Franchisee will retain an experienced commercial real estate broker or salesperson who has sufficient experience in locating Shop sites to locate, acquire, purchase or lease the site for the Franchisee's Development Shops.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the franchisee is responsible for selecting their shop location, but this selection is contingent upon the franchisor's approval. Specifically, the franchisee must get Bang Cookies's prior written approval for any potential shop location. To aid in this process, Bang Cookies requires franchisees to retain an experienced commercial real estate broker or salesperson to help find, acquire, purchase, or lease the site.
Bang Cookies needs specific information regarding the proposed site, such as accessibility, visibility, potential traffic flows, lease terms, and other demographic data. The franchisee cannot enter into any lease or purchase agreement until Bang Cookies has given its approval. This approval process ensures that the location aligns with Bang Cookies's standards and has the potential to be successful.
This requirement means that while franchisees have the autonomy to identify potential locations, Bang Cookies retains control over the final decision. This protects the brand's image and ensures consistent standards across all franchise locations. A prospective franchisee should carefully consider the site selection criteria and approval process, as it could impact the time and resources required to launch their Bang Cookies shop.