What principal obligations does a Bang Cookies franchisee have under the franchise and other agreements?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
e Agreement; "DA"– Multi-Unit Development Agreement
| Articles in Agreement | Disclosure | |||
|---|---|---|---|---|
| Document Item | ||||
| a. Site selection and acquisition/lease | FA: 2.A., 3.A. and 3.B. DA: 2, 5.5 and 5.6 | 7 and 11 | ||
| b. Pre-opening purchases and leases | FA: 3 and 8 DA: Not applicable | 7 and 8 | ||
| c. Site development and other pre- | FA: 3, 4, 7.F., 7.G., 7.I., 7.J., 8 and 9 | 6, 7 and 11 | ||
| opening requirements | DA: 2, 5.5 and 5.6 | |||
| d. Initial and ongoing training | FA: 4, 7.J., 14.C. and 14.D. DA: Not applicable | 11 | ||
| e. Opening | FA: 2, 3, 4 and 9.B. DA: 2, 3, 4.1, 4.4 and 4.5 | 11 | ||
| f. Fees | FA: 3, 4.A., 5, 9, 10, 12, 13, 14, 15, 16 and 18.N. DA: 4, 5.2 and 7.13 | 5, 6, and 7 | ||
| g. Compliance with standards and | FA: 3, 4, 5, 7, 8, 9, 11, 12 and 13 | 8 and 11 | ||
| policies/manual | DA: 2 and 5 | |||
| h. Trademarks and proprietary | FA: 6, 7 and 11 | 13 and 14 | ||
| information | DA: 2, 5 and 7.3 | |||
| i. Restrictions on products and services | FA: 3, 4.C. and 7 | 8, 11, and 16 | ||
| offered | DA: 2 and 5 | |||
| j. Warranty and customer service | FA: 7 | 16 | ||
| requirements | DA: Not applicable | |||
| k. Territorial development and sales | FA: 2 and 3 | 12 | ||
| quotas | DA: 4 | |||
| l. Ongoing product and service purchases | FA: 3, 4.C., 5 and 7 DA: Not applicable | 8 | ||
| m. Maintenance, appearance and | FA: 3 and 7 | 7 and 17 | ||
| remodeling requirements | DA: 5 | |||
| n. Insurance | FA: 8 DA: Not applicable | 7 and 8 | ||
| o. Advertising | FA: 3.F., 4.B., 7.I., 9 and 11 DA: Not applicable | 6 and 11 | ||
| p. Indemnification | FA: 10 and 11.E. DA: Not applicable | 6 | ||
| q. Owner’s participation, management, | FA: 4, 6 and 7 | 11 and 15 | ||
| and staffing | DA: 2.5 and 6.2 | |||
| r. Records and reports | FA: 5, 9, 12 and 13 DA: Not applicable | 6 | ||
| s. Inspections and audits | FA: 5, 7.K. and 13 DA: Not applicable | 6 and 11 |
| t. Transfer | FA: 14 DA: 6 | 17 |
|---|---|---|
| u. Renewal | FA: 15 DA: 3 | 17 |
| v. Post-termination obligations | FA: 6, 10, 11, 17 and 18 DA: Not applicable | 17 |
| w. Non-competition covenants | FA: 6, 17 and 18 DA: Not applicable | 17 |
| x. Dispute resolution | FA: 18.F. and 18.G. DA: 7 | 17 |
| y. Individual guarantee of franchisee obligations | FA: 2.C., 6, 7.J., 14.C., 14.D., 14.E. and 17.C. DA: 2.5 and 6.2 | 9 |
ITEM 10 FINANCING
We do not offer direct or indirect financing. We do not guarantee your note, lease or other obligation.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 28–29)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, Item 9 outlines the principal obligations for franchisees under the Franchise Agreement (FA) and the Multi-Unit Development Agreement (DA). These obligations span various aspects of the business, from initial setup to ongoing operations and eventual termination or transfer.
The obligations include site selection and acquisition/lease, pre-opening purchases and leases, site development and meeting pre-opening requirements. Franchisees must also complete initial and ongoing training, and fulfill requirements related to the store opening. Compliance with Bang Cookies' standards, policies, and manuals is mandatory, as is protecting trademarks and proprietary information.
Further obligations involve restrictions on products and services offered, warranty and customer service, territorial development and sales quotas, and ongoing product and service purchases. Franchisees are also responsible for maintenance, appearance, remodeling, insurance, advertising, and indemnification. They must also adhere to requirements for owner’s participation, management, and staffing, maintain records and reports, and allow inspections and audits.
Finally, franchisees have obligations related to transfer, renewal, post-termination activities, non-competition covenants, dispute resolution, and individual guarantees of franchisee obligations. These obligations are further detailed in the specified articles of the Franchise Agreement and Multi-Unit Development Agreement, as well as in other items within the Disclosure Document.