What happens if a Bang Cookies franchisee engages in Prohibited Activities during the Restricted Period?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
If you engage in any Prohibited Activities during the Restricted Period, then you agree that your Restricted Period will be extended by the period of time during which you were engaging in the prohibited activity (any such extension of time will not be construed as a waiver of your breach or otherwise impair any of our rights or remedies relating to your breach).
You acknowledge and agree that this restriction is fair and reasonable and that if you did engage in a Prohibited Activity that such actions would constitute acts of unfair competition and will irreparably harm us and the System.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, if a franchisee engages in any Prohibited Activities during the Restricted Period, the Restricted Period will be extended. The extension will be for the same amount of time that the franchisee was engaging in the prohibited activity.
Bang Cookies specifies that this extension of time will not be considered a waiver of the franchisee's breach. It also does not impair any of Bang Cookies's rights or remedies related to the franchisee's breach of contract.
The FDD states that engaging in Prohibited Activities constitutes acts of unfair competition and will irreparably harm Bang Cookies and the System. Prohibited Activities include owning an interest in a Competitive Business (with a minor exception for owning 3% or less in a publicly traded company), operating or performing services for a Competitive Business, diverting business or customers, or inducing customers to a business that is not a Bang Cookies Shop.