Can the Bang Cookies Franchisor transfer the Ancillary Agreements?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
At all times, Franchisor possesses and maintains the sole, absolute and unilateral right to Transfer and/or assign Franchisor's rights and obligations under this Agreement and the Ancillary Agreements, in whole and/or in part, for any purpose and in any form of transaction as may be designated and/or elected by Franchisor, in Franchisor's sole discretion, to any person, entity, Corporate Entity and/or third party without the consent of Franchisee and without the approval of Franchisee or any other party. Nothing contained in this Agreement shall prevent, prohibit, restrict, hinder, enjoin or otherwise restrain Franchisor from selling, transferring, conveying, or assigning this Agreement and the Ancillary Agreements, and/or Franchisor's rights and obligations under this Agreement and the Ancillary Agreements, to any person, entity, Corporate Entity or other third party. Franchisor has an unrestricted and unequivocal right to Transfer and/or assign any or all of its rights or obligations under this Agreement and the Ancillary Agreements, in whole or in part, in Franchisor's sole discretion. In the event Franchisor Transfers and/or assigns this Agreement and/or the Ancillary Agreements, and/or any or all of Franchisor's rights and obligations set forth in this Agreement and/or the Ancillary Agreements, to a person, an entity, Corporate Entity, or other third party, this Agreement and the Ancillary Agreements, shall survive, remain in full force and effect, and inure to the benefit of the purchaser, transferee, conveyee, and/or assignee of this Agreement and/or the Ancillary Agreements.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the franchisor has the right to transfer the Ancillary Agreements. Bang Cookies maintains the sole, absolute, and unilateral right to transfer its rights and obligations under the Franchise Agreement and the Ancillary Agreements. This transfer can be done in whole or in part, for any purpose, and in any form of transaction that Bang Cookies designates.
This means that Bang Cookies can sell, transfer, convey, or assign the Franchise Agreement and the Ancillary Agreements to any person, entity, or third party without the franchisee's consent or approval. The franchisee cannot prevent or restrict Bang Cookies from making such transfers.
In the event of a transfer, the Franchise Agreement and the Ancillary Agreements will remain in full force and effect, benefiting the new owner or assignee. This clause ensures that Bang Cookies retains maximum flexibility in managing and potentially selling its franchise system without needing the consent of individual franchisees.