factual

If a Bang Cookies franchisee signs both the Franchise Agreement and the Multi-Unit Development Agreement, which agreement's articles are amended?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

e relationship shall have the effect of: (i) waiting any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

IN WITNESS WHEREOF, the parties have duly executed and delivered this Illinois amendment to the Bang Cookies Franchise LLC Franchise Agreement and, if applicable, the Development Agreement on the same date as the Franchise Agreement and Development Agreement were, respectively, executed.

Franchisor: Franchisee: Bang Cookies Franchise LLC
Signature Signature
Name and Title (please print) Name (please print)
Dated Dated

MARYLAND FRANCHISE AND DEVELOPMENT AGREEMENT AMENDMENT

Amendments to the Bang Cookies Franchise Agreement

In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, the parties to the attached Bang Cookies Franchise LLC Franchise Agreement (the "Franchise Agreement") and, if Franchisor and Franchisee both sign the Bang Cookies Franchise LLC Multi-Unit Development Agreement (the "Development Agreement"), as follows:

    1. Article 14.C of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," subarticle 14.C(6) is supplemented with the addition of the following language:
    • ; provided, however, that all rights and causes of action arising in favor of Franchisee from the provisions of the Maryland Franchise Registration and Disclosure Law and the regulations issued thereunder, shall remain in force; it being the intent of this provision that the non-waiver provisions of the Maryland Franchise Registration and Disclosure Law be satisfied.
    1. Article 15.B. of the Franchise Agreement, under the heading "Conditions for Renewal," the subarticle 15.B(8) is supplemented with the addition of the following language:
    • ; provided, however, that all rights and causes of action arising in favor of Franchisee from the provisions of the Maryland Franchise Registration and Disclosure Law and the regulations issued thereunder, shall remain in force; it being the intent of this provision that the non-waiver provisions of the Maryland Franchise Registration and Disclosure Law be satisfied.
    1. Article 18.G. of the Franchise Agreement and, if Franchisee executes a Development Agreement, Article 7.6 of the Development Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction," shall be amended by the addition of the following statement added to Article 18.G.

Source: Item 23 — RECEIPTS (FDD pages 56–245)

What This Means (2024 FDD)

According to the 2024 Bang Cookies Franchise Disclosure Document, when a franchisee signs both the Franchise Agreement and the Multi-Unit Development Agreement, specific articles in both agreements are subject to amendments. These amendments are primarily related to compliance with state-specific franchise laws. For example, in Maryland, Article 18.G of the Franchise Agreement and Article 7.6 of the Development Agreement are amended to allow a franchisee to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.

Similarly, in Illinois, Article 18.F of the Franchise Agreement and Article 7.5 of the Development Agreement are amended to specify that Illinois law governs the agreements. This amendment also addresses venue stipulations, ensuring that any provision designating jurisdiction or venue outside Illinois is void, although arbitration outside Illinois is permitted.

In New York, Article 18 of the Franchise Agreement and Article 7 of the Development Agreement are supplemented to include a new subarticle addressing enforcement and construction, ensuring compliance with New York General Business Law. These state-specific addenda ensure that Bang Cookies franchise operations comply with local regulations, providing franchisees with certain rights and protections under state laws.

Prospective Bang Cookies franchisees should carefully review these state-specific amendments in Exhibit I of the FDD to understand how the Franchise Agreement and Multi-Unit Development Agreement are modified to comply with the laws of their specific state. This ensures they are aware of their rights and obligations under both agreements.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.