If a Bang Cookies franchisee is dissolved, what happens to the franchise agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
hout limitation as to any other Article or provision of this Agreement, upon expiration or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchisee to Franchisor and/or Franchisor affiliates and/or suppliers for products and services including, but not limited to, System Supplies.
17.B. CEASE OPERATIONS AND PROTECTION OF THE SYSTEM
Upon expiration, termination, or Transfer of this Agreement for any reason, Franchisee shall immediately:
- (1) Permanently cease to be a franchise owner of the Shop that was the subject of this Agreement and cease to operate such Shop under the System;
- (2) Refrain from directly or indirectly, holding oneself/itself out to any person or entity, or represent themselves/itself as a present or former Bang Cookies franchisee;
- (3) Permanently cease to use, in any manner: (a) the System including, without limitation, the Confidential Information, the Licensed Marks, the Business Management System Data, and the operations manual; (b) any methods, procedures, or techniques associated with the System in which Franchisor possesses proprietary rights or constitute Franchisor's trade secrets; (c) System Supplies, including communicating with or ordering products from Franchisor's designated suppliers and vendors of System Supplies; (d) the Approved Services and Products; and (e) any other advertising, marketing, media, and any other information, documents or things associated with Franchisor, the System, the Licensed Marks, Bang Cookies Shops, the Franchised Business, and Franchisee's former Bang Cookies Shop, including, without limitation, any confidential, proprietary methods, procedures, descriptions of products, techniques, trade secrets, proprietary marks, distinctive forms, slogans, symbols, signs, stationary, advertising material, articles, logos, devices, items and all other things, tangible or intangible, associated with Franchisor, the System,
the Licensed Marks, and Bang Cookies Shops;
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, upon the expiration, termination, or transfer of the Franchise Agreement for any reason, the franchisee must immediately cease operations as a Bang Cookies franchise owner. They must stop operating the shop under the Bang Cookies system and refrain from representing themselves as a current or former Bang Cookies franchisee. This means the franchisee loses all rights to operate under the Bang Cookies brand and system.
Specifically, the franchisee must permanently cease using the Bang Cookies system, including confidential information, licensed marks, business management system data, and the operations manual. They are prohibited from using any methods, procedures, or techniques associated with the Bang Cookies system in which Bang Cookies possesses proprietary rights or constitute trade secrets. The franchisee also cannot use system supplies or communicate with designated suppliers and vendors.
Furthermore, the franchisee is required to return the operations manual, confidential information (including business management system data and customer lists), and all other confidential materials, equipment, software, and property owned by Bang Cookies. However, the franchisee can retain copies of the Franchise Agreement, correspondence between Bang Cookies and the franchisee (excluding confidential information), and other documents required to be retained by law. This ensures that the franchisee no longer has access to or uses Bang Cookies' proprietary information and branding after the agreement ends.