Can the Bang Cookies Franchisor assign the Ancillary Agreements?

According to Bang Cookies's 2024 Franchise Disclosure Document, the franchisor has the right to transfer and/or assign its rights and obligations under the Franchise Agreement, in whole or in part, to any person or entity without the franchisee's consent or approval. This includes any form of transaction designated by Bang Cookies in its sole discretion. This broad right extends to all aspects of the agreement.

This means that a prospective Bang Cookies franchisee should be aware that the franchisor can transfer the agreement to another party without needing the franchisee's permission. This could potentially lead to the franchisee dealing with a completely different entity during the term of the franchise agreement. The new entity is not required to have the same business approach or values as the original franchisor.

While the document explicitly states Bang Cookies's right to transfer the Franchise Agreement, it does not specifically address whether this right extends to the Ancillary Agreements. However, given the broad language used regarding the Franchise Agreement, it is reasonable to assume that Bang Cookies would interpret this right to include the Ancillary Agreements as well, since those agreements are related to and support the Franchise Agreement. A prospective franchisee should seek clarification from Bang Cookies on this point to fully understand their rights and obligations.

In the context of a transfer of the franchise agreement, the transferee (new franchisee) must assume all obligations under the Ancillary Agreements in a manner satisfactory to Bang Cookies. This implies that the Ancillary Agreements are integral to the franchise relationship and will be transferred along with the main Franchise Agreement.