What is the purpose of the Bang Cookies Multi-Unit Development Agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
f a mortgage, charge, lien or security interest, including, without limitation, the grant of a collateral assignment; (c) a merger, consolidation, exchange of shares or other ownership interests, issuance of additional ownership interests or securities representing or potentially representing ownership interests, or redemption of ownership interests; (d) a sale or exchange of voting interests or securities convertible to voting interests, or an agreement granting the right to exercise or control the exercise of the voting rights of any holder of ownership interests or to
control the operations or affairs of Franchisee; and/or (e) the legal and/or equitable transfer and/or sale of an Owners interests and/or voting rights in Franchisee.
SECTION 2 DEVELOPMENT RIGHTS
2.1 DEVELOPMENT GRANT AND DEVELOPMENT OBLIGATIONS
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.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the Multi-Unit Development Agreement grants the franchisee the right and imposes the obligation to develop Bang Cookies shops within a specific geographic area, known as the Development Area. These shops, referred to as Development Shops, must be developed, opened, and operated in strict adherence to a development schedule and the terms outlined in each respective Franchise Agreement.
The agreement specifies that the total number of Development Shops, including the First Development Shop, is authorized and required for development as defined in the Development Information Sheet. This sheet also identifies the geographic area that constitutes the Development Area. The franchisee must follow the development schedule and the terms of the Franchise Agreement for each shop.
Furthermore, the document states that adherence to the terms of the Multi-Unit Development Agreement, each individual unit Franchise Agreement, Bang Cookies' operations manual, and the System standards and specifications is essential for the operation of all Bang Cookies Shops and the System as a whole. This ensures consistency and quality across all franchised locations.
In essence, the Multi-Unit Development Agreement allows a franchisee to develop multiple Bang Cookies locations within a defined area, subject to specific development timelines and operational standards. This agreement is crucial for franchisees looking to expand their footprint and for Bang Cookies to maintain brand consistency and quality across its franchise network.