What are the 'Management Service Fees' that Bang Cookies can charge if they appoint a manager?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
- (3) If, at any time, the Franchised Business is not being managed by a Managing Owner or Operating Manager who satisfactorily completed the Training Program, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of the Franchised Business for and on behalf of Franchisee. Franchisor's appointment of a manager of the Franchised Business does not relieve Franchisee of its obligations or constitute a waiver of Franchisor's right to terminate the Franchise pursuant to Article 16. Franchisor is not liable for any debts, losses, costs or expenses incurred in the operations of the Franchised Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by the Franchised Business while it is managed by Franchisor's appointed manager. Franchisor has the right to charge fees and expenses, as determined by Franchisor, in Franchisor's Reasonable Business Judgment, for management services (the "Management Service Fees"). Any determination as to whether or not Franchisor may elect to provide management services, if any, and the extent of such services, and/or the discontinuation thereof, shall be exclusively determined by Franchisor in Franchisor's Reasonable Business Judgment. The Management Service Fee shall be immediately payable upon invoice by us.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, if the Franchised Business is not being managed by a Managing Owner or Operating Manager who satisfactorily completed the Training Program, Bang Cookies is authorized to appoint a manager to maintain operations on behalf of the franchisee. This appointment does not relieve the franchisee of their obligations or waive Bang Cookies' right to terminate the franchise agreement.
Bang Cookies is not liable for any debts, losses, costs, or expenses incurred during the period when the appointed manager is in charge, nor are they liable to any creditor for purchases made by the business during this time. Bang Cookies retains the right to charge fees and expenses for these management services, referred to as "Management Service Fees," with the specific amounts to be determined by Bang Cookies in its reasonable business judgment.
The determination of whether to provide management services, the extent of such services, and their discontinuation are all at the exclusive discretion of Bang Cookies. These Management Service Fees are payable immediately upon invoicing by Bang Cookies. This means that a franchisee could face unexpected costs if Bang Cookies deems it necessary to step in and manage the business, and the franchisee will have little control over the amount charged for these services.