What is the geographic limit associated with the 'Development Area' for a Bang Cookies franchise?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor grants to Franchisee the right, and Franchisee accepts the right and undertakes the obligation to develop Bang Cookies Shops, each to be developed, opened and operated by Franchisee within the Development Area (each, a "Development Shop"), provided that Franchisee develops, opens and operates such Development Shops in strict accordance with the Development Schedule, and, in accordance with the terms and provisions of each respective Franchise Agreement.
The Development Area is and shall constitute the geographic area set forth and identified in the Development Information Sheet.
The Development Information Sheet is attached as Schedule A to this Agreement and is incorporated into and made a part of this Agreement. To be effective the Development Information Sheet must be completed and signed by Franchisor.
During the Term of this Agreement, provided that Franchisee is in compliance with the terms and provisions of this Agreement including, but not limited to, the Development Schedule, and each respective Franchise Agreement, Franchisor will not open, operate, or license any third party the right to open or operate Bang Cookies Shops within the Development Area. Franchisee agrees that the designated territory for each Development Shop shall be determined by the Franchise Agreement for each respective Development Shops and that, in aggregate, the operating territories for Franchisee's Development Shops may be smaller than the Development Area.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the Development Area's geographic area is detailed in the Development Information Sheet. This sheet, which specifies the territory granted to the franchisee for developing multiple Bang Cookies shops, is attached as Schedule A to the franchise agreement and must be completed and signed by the franchisor to be effective.
The franchisee is obligated to open and operate Bang Cookies shops within this Development Area according to a strict Development Schedule. Bang Cookies will not open, operate, or license any third party to open or operate Bang Cookies shops within the Development Area during the agreement's term, provided the franchisee complies with the agreement's terms, including the Development Schedule and individual Franchise Agreements.
However, the designated territory for each individual Bang Cookies shop will be determined by the Franchise Agreement for each shop, and the aggregate of these operating territories may be smaller than the overall Development Area. Therefore, while the Development Area provides an exclusive zone for development, the actual operating territories for each shop may vary and, in total, not cover the entire Development Area.