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What principal obligations does a Bang Cookies franchisee have under the franchise and other agreements?

Bang_Cookies Franchise · 2024 FDD

Answer 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.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.