When does the Bang Cookies Multi-Unit Development Agreement automatically expire?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Sections in Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 3 | Varies depending on the number of Shops to be developed and the Development Area. The agreement commences on the effective date and the term automatically expires at the earlier of the opening of the final Shop required for development, or the last day of the calendar month in which the final Shop was required to be open under the Multi-Unit Development Agreement. |
| b. | Renewal or extension of the | Not | There is no renewal of the Multi-Unit Development |
| term | applicable | Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–49)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the Multi-Unit Development Agreement's term varies based on the number of shops to be developed and the development area. The agreement begins on its effective date.
The agreement automatically expires when the earlier of these two conditions is met: either the opening of the final Bang Cookies shop required for development, or the last day of the calendar month in which the final shop was required to be open under the Multi-Unit Development Agreement.
Unlike a standard franchise agreement, the Bang Cookies Multi-Unit Development Agreement does not offer any renewal or extension options. This means that once the agreement expires, the franchisee loses all rights associated with it, and there is no opportunity to continue the development arrangement.