What is the Bang Cookies franchisee's right to use the Licensed Marks and the System limited to?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
(10) The foregoing rights granted in this Article 2.A. are subject to and contingent upon each and every, term and condition of this Agreement, the rights of any prior user, and are non-exclusive and subordinate to the Reserved Rights.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, a franchisee's right to use the Licensed Marks and the System is subject to several limitations. These rights are contingent upon the franchisee's compliance with all terms and conditions of the Franchise Agreement, the rights of any prior users, and the franchisor's reserved rights. This means that even if a franchisee is granted the right to use the Bang Cookies system and marks, they must adhere to all contractual obligations to maintain those rights. Additionally, pre-existing rights of other parties could take precedence, and Bang Cookies retains specific rights that can override the franchisee's usage.
Bang Cookies reserves the right to operate or grant others the right to operate a Bang Cookies shop using the System and Licensed Marks outside the franchisee's designated territory. They can also engage in business activities, including those that compete with the franchisee, as long as they do not use the Licensed Marks within the franchisee's designated territory. Furthermore, Bang Cookies can use the Licensed Marks and System to distribute approved products through alternative channels of distribution, even within the franchisee's territory. They also reserve the right to operate Bang Cookies shops in captive markets, both inside and outside the franchisee's designated territory.
Upon termination or transfer of the Franchise Agreement, the franchisee must immediately cease operating as a Bang Cookies franchise, stop using the System and Licensed Marks, and discontinue using any methods, procedures, or techniques associated with the System. They must also stop using System Supplies, Approved Services and Products, and any advertising or marketing materials associated with Bang Cookies. This ensures that the franchisee's rights to use the Licensed Marks and System are strictly limited to the duration and terms of the Franchise Agreement.