What are the limitations on Corey B's role in the Bang Cookies franchise?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
The Franchise Agreement requires that you or, if you are a Corporate Entity, your designated managing shareholder, member or partner (your "Managing Owner") be personally responsible for the management and overall supervision of your Shop. Your Managing Owner must complete, to our satisfaction, our initial training program and be approved by us. While we recommend that your Managing Owner personally participate in the day-to-day management and on-site supervision and operations of your Shop, you may hire an operating manager to supervise and manage the day-to-day on-site operations of your Shop provided that your operating manager: (a) meets all of our minimum standards and criteria for managers; (b) completes our initial training program; and (c) signs our confidentiality agreements (an "Operating Manager"). At all times, your Shop must be managed and supervised on-site by either a Managing Owner or Operating Manager. If you own and operate multiple Shops then each Shop must be managed and supervised on-site by an Operating Manager.
You and, if you are a Corporate Entity, each of your members, shareholders and/or partners (collectively, "Owners"), must personally guarantee all of your obligations to us under the Franchise Agreement. Each Owner and the spouse of each Owner must personally guarantee your obligations to us under the Franchise Agreement. You and each Owner and spouse must also promise in writing that, among other things, during the term of the Franchise Agreement you will not participate in any business that in any way competes with the Franchised Business, and that for 24 months after the expiration of termination of the Franchise Agreement (with said period being tolled during any periods of non-compliance), neither you nor your Owners and their spouses will participate in any competitive business located within and/or servicing customers located within your Designated Territory and a 25 mile radius surrounding your Designated Territory. Further you will not participate in any competitive business located within and/or servicing customers located within a 10 mile radius of any other Bang Cookies Shop and/or the designated territory of any other Bang Cookies Shop. Your managers and all other employees and agents with access to our confidential information will be required by us to sign a confidentiality agreement.
Source: Item 18 — PUBLIC FIGURES (FDD pages 49–50)
What This Means (2024 FDD)
Based on the 2024 Bang Cookies Franchise Disclosure Document, if a franchisee is a Corporate Entity, their designated managing shareholder, member, or partner (referred to as the "Managing Owner") must be personally responsible for the management and overall supervision of their Bang Cookies shop. This Managing Owner is required to complete Bang Cookies' initial training program to the franchisor's satisfaction and must be approved by them. While it's recommended that the Managing Owner actively participate in the day-to-day management and on-site supervision, the franchisee has the option to hire an operating manager to handle these responsibilities, provided that the operating manager meets specific criteria.
To be an acceptable operating manager, the individual must meet Bang Cookies' minimum standards for managers, complete the initial training program, and sign confidentiality agreements. Regardless of whether a Managing Owner or an Operating Manager is in place, the Bang Cookies shop must always have on-site management and supervision. If a franchisee owns and operates multiple Bang Cookies shops, each location must be managed and supervised on-site by an Operating Manager.
Furthermore, all Owners (members, shareholders, and/or partners) must personally guarantee all of the franchisee's obligations to Bang Cookies under the Franchise Agreement. Each Owner and their spouse must also agree in writing not to participate in any business that competes with the Bang Cookies franchised business during the term of the Franchise Agreement. This non-compete agreement extends for 24 months after the expiration or termination of the Franchise Agreement, within the Designated Territory and a 25-mile radius, as well as within a 10-mile radius of any other Bang Cookies shop. Managers and employees with access to confidential information are also required to sign a confidentiality agreement.