Regarding the Bang Cookies Franchise Agreement and Multi-Unit Development Agreement, where can I find state-specific addendums related to the requirement of executing a general release for assignment, sale, or transfer?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Individual state law may supersede the provisions contained in your Franchise Agreement and, if applicable, your Multi-Unit Development Agreement respecting the requirement that you execute a general release as a condition to assignment, sale or transfer. See, the state specific addendums contained in Exhibit I of this Disclosure Document.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, state-specific addendums related to the requirement of executing a general release as a condition to assignment, sale, or transfer of the franchise can be found in Exhibit I of the Disclosure Document. These addendums address how individual state laws may supersede the provisions in the Franchise Agreement and Multi-Unit Development Agreement.
For a prospective Bang Cookies franchisee, this means that the standard requirement to execute a general release when assigning, selling, or transferring their franchise may be modified or not applicable depending on the specific state laws where the franchise is located. It is important to carefully review Exhibit I to understand any state-specific variations to this requirement.
This is a fairly common practice in franchising, as state laws often have specific regulations that can impact franchise agreements. Franchisees should pay close attention to these state-specific addendums to ensure they are in compliance with local laws and understand their rights and obligations when it comes to transferring their Bang Cookies franchise.