Can a Bang Cookies franchisee substitute the designated Business Management System?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
e of the availability of substitute products, supplies, inventory, apparel and/or accessories, Franchisee shall only utilize the System Supplies as designated by Franchisor and only from those suppliers approved by Franchisor. Franchisee agrees that in many instances Franchisor and/or Franchisor's affiliates may be or may become the exclusive supplier of System Supplies.
3.E. BUSINESS MANAGEMENT SYSTEM
At all times, Franchisee shall exclusively use the Business Management Systems designated by Franchisor, in Franchisor's Reasonable Business Judgment, and as may be modified, supplemented or replaced by Franchisor from time to time. Franchisee cannot substitute or replace the Business Management System in favor of any substitutes or other systems. To the extent that the Business Management System is hosted, maintained, licensed or operated by third party suppliers, Franchisee shall purchase, license and maintain such Business Management System and/or systems from such third party suppliers designated by Franchisor and subject to Franchisor's standards and specifications. To the extent that the designated Business Management Systems is/are internet or cloud-based with accounts and data, including accounts and data associated with the Franchised Business, stored off-site, Franchisor may require that Franchisee's license, and use of the Business Management System occur through accounts registered to Franchisor, controlled by Franchisor or licensed through Franchisor. To the extent that the Business Management System(s) is/are stored locally on computer systems maintained by Franchisee, then Franchisee shall provide Franchisor with internet and complete remote access to such systems. Franchisor may be and/or become the exclusive supplier and/or reseller of the Business Management System.
Franchisee shall be responsible for initial license fees, training fees and continuing monthly license fees required for use of the Business Management System as specified by Franchisor. Such fees shall be designated and determined by Franchisor, in Franchisor's Reasonable Business Judgment or by the suppliers designated by Franchisor and approved by Franchisor in Franchisor's Reasonable Business Judgment, and shall be paid to Franchisor and/or to the third party suppliers approved by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, franchisees must exclusively use the Business Management Systems designated by Bang Cookies. Franchisees are not allowed to substitute or replace the designated system with any alternatives.
This means a prospective Bang Cookies franchisee must use the specific software and systems that Bang Cookies mandates for managing their business. This includes point-of-sale systems and customer relationship management systems. The franchisee is responsible for the initial license fees, training fees, and continuing monthly license fees associated with the Business Management System. These fees are determined either by Bang Cookies or by third-party suppliers approved by Bang Cookies.
The designated Business Management System may be hosted, maintained, or licensed by third-party suppliers. In such cases, the franchisee must purchase, license, and maintain the system from the suppliers that Bang Cookies designates, adhering to Bang Cookies's standards and specifications. If the system is internet or cloud-based, Bang Cookies may require that the franchisee's license and use of the system occur through accounts registered to or controlled by Bang Cookies. If the system is stored locally, the franchisee must provide Bang Cookies with complete remote access.
Franchisees must complete training, purchase, and license the Business Management Systems no later than 45 days prior to the earlier of the Actual Business Commencement Date or the Scheduled Business Commencement Date. The Business Management System will contain proprietary and confidential information owned by Bang Cookies and related to the System.