What kind of supplies is a Bang Cookies franchisee required to exclusively purchase and use?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
applicable ordinances, building codes, permit requirements and lease or deed requirements and restrictions;
- (4) Provide Franchisor timely written reports regarding the process of construction and remodeling in compliance with Franchisor's then current specifications; and
- (5) Establish filing, accounting, and inventory control systems, conforming to the requirements prescribed by Franchisor, if any.
At all times, in the construction and operation of the Franchised Business, Franchisee shall exclusively install, use, attach, maintain, replenish and replace only those types of construction and decorating materials, furniture, fixtures, equipment, and signs that Franchisor has approved or designated in the operations manual for Bang Cookies Shops as meeting Franchisor's specifications and standards for appearance, function and performance. Franchisee only may purchase approved or designated types of construction and decorating materials, fixtures, equipment, furniture and signs from any supplier approved or designated by Franchisor, which may include Franchisor and Franchisor's affiliates.
3.C. SHOP OPENING
Franchisee must develop and open the Franchised Business to the public and, commence the day-to-day operations of the Franchised Business, on or before the Scheduled Business Commencement Date. Notwithstanding the foregoing, Franchisee agrees that prior to opening the Franchised Business to the Public, Franchisee must, as determined by Franchisor: (a) be in compliance with the terms and conditions of this Agreement; (b) have satisfied the pre-opening obligations set forth by Franchisor in the operations manual; (c) have completed and satisfied the training obligations designated by Franchisor; and (d) obtained Franchisor's written consent to open.
3.D. SHOP OPERATIONS
At all times, the Franchised Business shall: (a) be exclusively operated from Franchisee's Shop Location that has been approved by Franchisor; (b) be exclusively operated from a Shop Facility; (c) exclusively offer and sell the Approved Services and Products as designated by Franchisor, in Franchisor's Reasonable Business Judgment, and as modified by Franchisor from time to time; (d) ensure that the Approved Services and Products are only offered and provided by Franchisee through employees and/or Owners that have, to Franchisor's satisfaction, completed the training requirements and Training Programs required by Franchisor, in Franchisor's Reasonable Business Judgment and as may be modified and supplemented by Franchisor from time to time; (e) exclusively utilize, maintain and stock in inventory the System Supplies in such quantities and as designated by Franchisor, in Franchisor's Reasonable Business Judgment, and as modified by Franchisor from time to time;
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, a franchisee must exclusively use specific construction and decorating materials, furniture, fixtures, equipment, and signs that Bang Cookies has approved. These items must meet Bang Cookies' standards for appearance, function, and performance. Franchisees can only purchase these approved items from suppliers that Bang Cookies designates, which may include Bang Cookies itself or its affiliates.
Bang Cookies defines "System Supplies" as all merchandise, inventory, products, supplies, and goods that constitute the Approved Services and Products authorized for sale. This includes items used to prepare and sell these services and products, as well as those designated for marketing, sales, and delivery, such as uniforms, point-of-sale displays, and packaging. Additionally, furniture, fixtures, and equipment designated by Bang Cookies are considered System Supplies.
The operations manual contains mandatory and suggested specifications, standards, and operating procedures for Bang Cookies shops, including those related to Approved Services and Products and System Supplies. Franchisees must operate in strict accordance with these guidelines, which Bang Cookies may modify over time. Franchisees are only allowed to offer and sell Approved Services and Products and use System Supplies as designated by Bang Cookies in the operations manual.
This requirement ensures uniformity and quality control across all Bang Cookies locations, but it also limits the franchisee's autonomy in choosing suppliers and materials. Prospective franchisees should carefully review the list of approved suppliers and the specifications for required items to understand the potential costs and restrictions involved in operating a Bang Cookies franchise.