If a Bang Cookies franchisee is an individual and dies, how long does their representative have to appoint a manager?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
made only in conjunction with a Transfer of this Agreement, approved by Franchisor in accordance with and subject to this Article 14 and the terms and conditions of this Agreement; and
- (19) Franchisor's consent to a Transfer of any interest that is subject to the restrictions of this Agreement shall not constitute a waiver of any claims it may have against Franchisee or deemed a waiver of Franchisor's right to demand strict and exact compliance with this Agreement by the transferee.
14.D. DEATH OR DISABILITY OF FRANCHISEE OR AN OWNER
(1) If Franchisee is an individual and not a Corporate Entity, upon the death or permanent disability of Franchisee, the executor, administrator, conservator or other personal representative of Franchisee, must appoint a manager that meets the equivalent of an Operating Manager within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability. The appointed manager (as applicable) must serve and qualify as an Operating Manager and attend and successfully complete the Training Program within 60 days of the appointment. If Franchisee's Shop is not being managed by a Franchisor approved Operating Manager (as applicable) within 30 days after such death or permanent disability, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of Franchisee's Shop for, and on behalf of, Franchisee at Franchisee's sole costs until an approved Operating Manager is able to assume
the management and operation of Franchisee's Shop. Franchisor's appointment of a manager for Franchisee's Shop does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16, below.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, if the franchisee is an individual, their representative (executor, administrator, conservator, etc.) has a limited time frame to appoint a manager in the event of the franchisee's death or permanent disability. Specifically, the representative must appoint a manager who meets the standards of an Operating Manager within a 'reasonable time', which the agreement defines as no more than 30 days from the date of death or permanent disability.
This appointed manager must then qualify as an Operating Manager and successfully complete the Bang Cookies Training Program within 60 days of their appointment. If the shop isn't managed by an approved Operating Manager within that initial 30-day window, Bang Cookies has the option, but not the obligation, to appoint a manager to oversee the shop's operations on behalf of the franchisee. The franchisee will bear the costs for this interim management.
It's important to note that Bang Cookies's decision to appoint a manager doesn't relieve the franchisee of their obligations under the Franchise Agreement, nor does it waive Bang Cookies's right to terminate the agreement. Furthermore, Bang Cookies will not be liable for any debts, losses, costs, or expenses incurred during the operations of the shop, even if managed by their appointed manager. Bang Cookies also reserves the right to charge a reasonable fee for these management services and can discontinue them at any time.