What page in the Bang Cookies FDD discusses Development Rights?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor grants to Franchisee the right, and Franchisee accepts the right and undertakes the obligation to develop Bang Cookies Shops, each to be developed, opened and operated by Franchisee within the Development Area (each, a "Development Shop"), provided that Franchisee develops, opens and operates such Development Shops in strict accordance with the Development Schedule, and, in accordance with the terms and provisions of each respective Franchise Agreement.
The aggregate number of Development Shops (including the First Development Shop) (collectively, referred to as the "Total Development Shops") that are authorized by this Agreement and required for development, subject to the terms of this Agreement and each respective Franchise Agreement, is set forth and defined in the Development Information Sheet.
The Development Area is and shall constitute the geographic area set forth and identified in the Development Information Sheet.
The Development Information Sheet is attached as Schedule A to this Agreement and is incorporated into and made a part of this Agreement. To be effective the Development Information Sheet must be completed and signed by Franchisor.
Franchisee agrees that Franchisee must: (a) open and commence the operations of each new Development Shop in accordance with the Development Schedule for each respective Development Period, as set forth in this Agreement; and (b) maintain in operation the minimum cumulative number of Development Shops in accordance with the Development Schedule for each respective Development Period. Franchisee agrees that "time is of the essence" with respect to Franchisee's development obligations under this Agreement, and that Franchisee's failure to comply with the Development Schedule is grounds for immediate termination of this Agreement and, any future development rights granted under this Agreement.
During the Term of this Agreement, provided that Franchisee is in compliance with the terms and provisions of this Agreement including, but not limited to, the Development Schedule, and each respective Franchise Agreement, Franchisor will not open, operate, or license any third party the right to open or operate Bang Cookies Shops within the Development Area. Franchisee agrees that the designated territory for each Development Shop shall be determined by the Franchise Agreement for each respective Development Shops and that, in aggregate, the operating territories for Franchisee's Development Shops may be smaller than the Development Area.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, Section 2.1, titled "DEVELOPMENT GRANT AND DEVELOPMENT OBLIGATIONS," discusses development rights. This section outlines the rights and obligations of the franchisee regarding the development of Bang Cookies shops within a designated Development Area. The franchisee is granted the right and undertakes the obligation to develop, open, and operate Bang Cookies shops, referred to as "Development Shops," within the specified area. These shops must be developed, opened, and operated in strict accordance with the Development Schedule and the terms of the respective Franchise Agreements. The total number of Development Shops authorized and required for development is detailed in the Development Information Sheet. The Development Area is defined geographically in the Development Information Sheet, which is attached as Schedule A to the agreement and must be completed and signed by Bang Cookies.
The franchisee must open and commence operations of each new Development Shop according to the Development Schedule for each Development Period. They must also maintain the minimum cumulative number of Development Shops as per the Development Schedule. Bang Cookies emphasizes that compliance with the Development Schedule is critical, and failure to do so can result in immediate termination of the agreement and any future development rights. During the term of the agreement, provided the franchisee complies with all terms, including the Development Schedule and Franchise Agreements, Bang Cookies will not open, operate, or license any third party to open or operate Bang Cookies shops within the Development Area. The designated territory for each Development Shop will be determined by the Franchise Agreement for each shop, and the aggregate operating territories for the franchisee's Development Shops may be smaller than the Development Area.
This section also addresses limited exclusivity and reserved rights. This means that while the franchisee has certain exclusive rights within their Development Area, Bang Cookies retains certain rights as well. Prospective franchisees should carefully review the Development Information Sheet and Development Schedule to fully understand their obligations and the scope of their exclusive rights. Understanding these development rights and obligations is crucial for any franchisee considering expanding their Bang Cookies business through multiple locations.