What is included in the definition of a 'Company Owned Outlet' for a Bang Cookies franchise?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) Company Owned Outlet means an Outlet owned either directly or indirectly by us, our affiliate or any person identified in Item 2 of this Disclosure Document.
A Company Owned Outlet also includes any Outlet that is operated as a joint venture owned in part by us, our affiliate or any person identified in Item 2 of this Disclosure Document, or that is managed by us our affiliate or any person identified in Item 2.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 50–53)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, a 'Company Owned Outlet' encompasses several scenarios. It includes outlets directly or indirectly owned by Bang Cookies, its affiliates, or any individuals listed in Item 2 of the FDD. This definition extends to outlets operated as joint ventures where Bang Cookies, its affiliates, or individuals from Item 2 have partial ownership. Furthermore, any outlet managed by Bang Cookies, its affiliates, or those identified in Item 2 also falls under the 'Company Owned Outlet' designation.
This definition is important for prospective franchisees because it clarifies the distinction between company-operated locations and franchised locations. Understanding this difference is crucial when evaluating financial performance data, as the performance of company-owned stores may not always be indicative of the potential performance of a franchised location due to factors like operational control, location selection, and resource allocation.
For example, Item 19 of the Bang Cookies FDD provides financial performance representations based on data from Company Owned Outlets. The FDD specifically excludes the Newark Airport location from its financial performance data because it is a small-scale kiosk and not representative of a typical franchise offering. This highlights the importance of understanding the specific characteristics of the outlets used to generate the financial data presented in the FDD and how they compare to the franchise opportunity being offered.
Therefore, prospective Bang Cookies franchisees should carefully review the definition of 'Company Owned Outlet' and consider how the performance of these outlets might differ from that of a franchised location. It is advisable to ask Bang Cookies for detailed information about the operational differences between company-owned and franchised locations and to seek clarification on any factors that could impact the financial performance of a franchise.