What qualifications must a new Managing Owner have to meet for a Bang Cookies franchise?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
ons manual, and/or as otherwise designated by Franchisor from time to time, Franchisee shall immediately notify Franchisor in writing of such discrepancy. In the event of any conflict or ambiguity, Franchisor's determination and/or resolution made by Franchisor, in writing, and, specifically with regard to the presented conflict or ambiguity, shall be determinative as between Franchisor and Franchisee and the operations of the Franchised Business.
7.J. MANAGEMENT OF SHOP
(1) Franchisee agrees that critical to the success of the Franchised Business is the active, continuing and substantial personal involvement and hands-on supervision of Franchisee's Managing Owner.
At all times, Franchisee's Bang Cookies Shop must be under the active, continuing and substantial personal involvement and hands-on supervision of Franchisee's Managing Owner. The Managing Owner must at all times be actively involved in the operation of the Franchised Business unless Franchisee delegates management functions to an authorized Operating Manager who, among other things, satisfactorily completed Franchisor's Training
Program and has otherwise meet the criteria and conditions for qualification as an Operating Manager. If the Operating Manager is a family member of Franchisee and/or an Owner then the Operating Manager must also sign and agree to be bound by the terms of the Franchise Owner and Spouse Agreement and Guaranty.
- (2) Franchisee must, at all times, faithfully, honestly and diligently perform its obligations hereunder, and continuously exert its best efforts to promote and enhance the business of the Franchised Business and the goodwill of the Licensed Marks.
- (3) If, at any time, the Franchised Business is not being managed by a Managing Owner or Operating Manager who satisfactorily completed the Training Program, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of the Franchised Business for and on behalf of Franchisee. Franchisor's appointment of a manager of the Franchised Business does not relieve Franchisee of its obligations or constitute a waiver of Franchisor's right to terminate the Franchise pursuant to Article 16.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the success of a Bang Cookies franchise hinges on the active and substantial involvement of the Managing Owner. The Managing Owner must be actively involved in the Bang Cookies shop's operations. However, the Franchisee can delegate management functions to an authorized Operating Manager if that manager has satisfactorily completed Bang Cookies' training program and meets the criteria for qualification as an Operating Manager. If the Operating Manager is a family member of the Franchisee or an Owner, they must also sign the Franchise Owner and Spouse Agreement and Guaranty.
In the event of a transfer of ownership, the proposed transferee, including their owners and spouses if the transferee is a corporate entity, must meet specific qualifications. They must be of good moral character, possess sufficient business experience, aptitude, and financial resources to successfully own and operate a Bang Cookies shop. Additionally, they must meet Bang Cookies' then-applicable standards for franchisees, as determined by Bang Cookies. The proposed transferee and their owners and spouses cannot own or operate a competitive business.
Furthermore, the transferee and the transferee's Managing Owner, Managers and/or any other applicable employees of transferee's Bang Cookies Shop must complete any training programs then in effect for franchisees of Bang Cookies Shops upon terms and conditions set forth in this Agreement or as Franchisor otherwise reasonably requires. These stipulations ensure that any new Managing Owner is well-prepared and capable of maintaining the standards and operational requirements of a Bang Cookies franchise.