How many development periods are included in the Bang Cookies development schedule?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that to induce Franchisor to enter into this Agreement, Franchisee agrees to develop, establish and operate Development Shops in strict accordance with the requirements of a development schedule (the "Development Schedule"). The Development Schedule, among other things, sets forth and defines each respective measurement period / measurement periods (each, respectively, a "Development Period") and the number of Development Shops that Franchisee must establish and open (a "Newly Opened Development Shop(s)") within the respective Development Period and, the minimum number of cumulative Development Shops (the "Cumulative Development Shops") that must be open and in operation as of the last day of each applicable Development Period.
The Development Schedule is set forth in the Development Information Sheet.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to the 2024 Bang Cookies Franchise Disclosure Document, the franchise agreement requires franchisees to adhere to a development schedule that outlines specific periods for opening new locations. Section 4.4 defines the "Development Schedule" as setting forth each "Development Period" and the number of "Development Shops" that the franchisee must establish and open within each period. It also defines the minimum number of "Cumulative Development Shops" that must be open and in operation by the end of each Development Period. The specifics of the development schedule, including the number of development periods, are detailed in the Development Information Sheet, which is attached as Schedule A to the agreement.
Prospective franchisees should carefully review Schedule A to understand the number of development periods, the required number of Bang Cookies shops to be opened in each period, and the cumulative number of shops required to be operational. The agreement emphasizes that failure to meet the development schedule constitutes a material breach of the agreement. This means that not opening the required number of stores within the specified timeframes could lead to termination of the agreement.
Therefore, a clear understanding of the development schedule is crucial for any franchisee considering a multi-unit development agreement with Bang Cookies. It is essential to assess whether the schedule is reasonable and achievable based on their resources and market conditions. Franchisees should also be aware that "time is of the essence" with respect to these development obligations, meaning strict adherence to the schedule is expected by Bang Cookies.