What is the 'Relocation' definition in the Bang Cookies Franchise Agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
3.G. SHOP RELOCATION
To the extent that Franchisee wishes to relocate the Franchised Business and, thereby, Franchisee's Shop Location and Franchisee's Shop Facility, Franchisee must obtain Franchisor's prior written consent, which Franchisor may refuse in Franchisor's Reasonable Business Judgment. Franchisee agrees that if Franchisor does consent to the relocation of the Franchised Business, that Franchisor may condition Franchisor's consent to Franchisee's relocation request on requirements imposed by Franchisor which may include, among other things: (a) that the proposed Shop Location meet and satisfy Franchisor's then current standards for Shop Locations; (b) that the proposed Shop Facility meet and satisfy Franchisor's then current standards for Shop Facilities; (c) that the proposed Shop Facility be constructed and established in accordance with Franchisor's current standards and specifications; (d) that the proposed Shop Location be located within Franchisee's Designated Territory; (e) that the proposed Shop Location (even if it is located within the Designated Territory) not be within a close proximity to the Designated Territory and/or Shop Location of another Bang Cookies Shop; and (f) that, as to the proposed Shop Facility and proposed Shop Location, Franchisee satisfy the terms and conditions set forth in this Agreement for Shop Facilities, and Shop Locations including, but not limited to, the requirements set forth in Articles 2.A. and 3.B. of this Agreement. Franchisee agrees that Franchisor possesses sole discretion as to whether or not Franchisor approves of Franchisee's relocation request.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the franchise agreement addresses shop relocation in Section 3.G. It states that if a franchisee wishes to relocate their Franchised Business, Shop Location, and Shop Facility, they must first obtain prior written consent from Bang Cookies. Bang Cookies retains the right to refuse consent based on their Reasonable Business Judgment.
If Bang Cookies consents to the relocation, they may impose requirements on the franchisee. These conditions can include ensuring the proposed Shop Location meets Bang Cookies' current standards for Shop Locations, and that the proposed Shop Facility meets their standards for Shop Facilities. The facility must be constructed according to Bang Cookies' current standards and specifications.
Additionally, the proposed Shop Location must be within the franchisee's Designated Territory and not be in close proximity to another Bang Cookies Shop, even within the Designated Territory. The franchisee must also satisfy all terms and conditions in the agreement related to Shop Facilities and Shop Locations, as outlined in Articles 2.A. and 3.B. The agreement explicitly states that Bang Cookies possesses sole discretion in approving or denying a relocation request, giving them significant control over where a franchisee can operate.