What happens if a Bang Cookies franchisee fails to comply with all applicable laws?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 23: RECEIPTS]
(4) Franchisee must immediately notify Franchisor in writing of any of the following concerning Franchisee, the Franchised Business, Franchisee's Shop Location and/or Franchisee's Shop Facility: (a) any cause of action, claim, lawsuit, proceeding, and investigation; (b) issuance of any order, writ, injunction, award, and/or decree by any court, agency, or other governmental entity; and (c) any notice of violation of any law, ordinance, code, permit, or regulation.
(5) Franchisee shall, at all times, ensure that all advertising and promotion of the Franchised Business by Franchisee is completely factual and conforms to the highest standards of ethical advertising, and is in conformity with Franchisor's standards and specifications.
Franchisee shall refrain from any business practice, advertising practice, or personal conduct that may be injurious to Franchisor, the System, Bang Cookies Shops, and the Licensed Marks.
Franchisor, in Franchisor's sole discretion, shall possess, among other things, the unilateral right to reject any and all advertising relating to the Franchised Business, Franchisor, the System, Bang Cookies Shops and/or using the Licensed Marks.
- (6) Franchisee and Owners agree to comply with, and/or to assist Franchisor to the fullest extent possible in Franchisor's efforts to comply with Anti-Terrorism Laws (as defined below).
In connection with such compliance, Franchisee and each Owner certify, represent, and warrant that Franchisee's or any Owner's property or interests is not subject to being "blocked" under any of the Anti-Terrorism Laws, and Franchisee and each Owner are not otherwise in violation of any of the Anti-Terrorism Laws.
Franchisee further certifies that Franchisee and each Owner are not listed on the Annex to Executive Order 13244 (the Annex is available at http://www.treasury.gov) and will not become so listed, hire any person so listed, or have dealings with any person so listed.
6. Breach. You agree that failure to comply with the terms of this Agreement will cause irreparable harm to us and to our franchisor Bang Cookies Franchise LLC, and other Bang Cookies franchisees for which there is no adequate remedy at law. Therefore, you agree that any violation of these covenants will entitle us or our Franchisor Bang Cookies Franchise LLC to injunctive relief. You agree that we and/or our Franchisor Bang Cookies Franchise LLC may apply for such injunctive relief, without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and the sole remedy of yours, in the event of the entry of such injunction, will be the dissolution of such injunction, if warranted, upon hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby). If a court requires the filing of a bond notwithstanding the preceding sentence, you agree that the amount of the bond shall not exceed $1,000. None of the remedies available to us under this Article are exclusive of any other, but may be combined with others under this Agreement, or at law or in equity, including injunctive relief, specific performance and recovery of monetary damages.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, franchisees must immediately notify Bang Cookies in writing of any notice of violation of any law, ordinance, code, permit, or regulation concerning the franchisee, the franchised business, the shop location, or the shop facility. Franchisees and owners also agree to comply with Anti-Terrorism Laws and must certify they are not in violation of any of these laws.
Bang Cookies emphasizes the importance of franchisees adhering to legal and ethical standards. The document states that franchisees must ensure all advertising and promotion of the franchised business is completely factual and conforms to the highest standards of ethical advertising, aligning with Bang Cookies' standards and specifications. Bang Cookies retains the right to reject any advertising related to the franchised business or the use of licensed marks.
Furthermore, the FDD states that failure to comply with the terms of the agreement, including legal obligations, will cause irreparable harm to Bang Cookies and other franchisees. In such cases, Bang Cookies is entitled to injunctive relief, allowing them to seek court orders to compel compliance. While Bang Cookies can apply for injunctive relief without bond, if a court requires a bond, it will not exceed $1,000. These remedies are not exclusive and can be combined with others, including specific performance and monetary damages.