When is the Bang Cookies renewal fee payable?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| Non-compliance | Actual fees, costs, and expenses | On demand | Fees, costs and expenses incurred by us as a result of your breach or noncompliance with the terms of your Franchise Agreement. |
|---|---|---|---|
| Supplier Review | Actual fees, costs, and expenses | Within 14 days of invoice | You must pay us the costs incurred by us to review and evaluate a potential supplier, product, or service that you submit to us for approval. |
| Management Service | Actual costs incurred by us | As invoiced | Payable if we elect to manage the Franchised Business due to a failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager. |
| Transfer | $15,000 | On demand | Payable if we approve your transfer request, but prior to execution of final transfer agreements and authorization. |
| Renewal | $10,000 | On signing renewal Franchise Agreement | Payable if we approve your renewal request and upon signing our then current Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the renewal fee is payable upon signing the renewal Franchise Agreement. The fee is $10,000, and it is payable if Bang Cookies approves the renewal request. This means a franchisee must pay the renewal fee at the time of signing the new agreement to continue operating their Bang Cookies franchise.
This condition is fairly standard in the franchise industry, as it ensures that the franchisee is committed to the renewal and that Bang Cookies receives compensation for the continued use of its brand and system. The franchisee should budget for this $10,000 payment as the end of their current franchise term approaches, understanding that the renewal is contingent on Bang Cookies's approval.
It is important to note that the renewal is not automatic. Bang Cookies must approve the renewal request, and the franchisee must sign the then-current Franchise Agreement, which may have different terms than the original agreement. Therefore, franchisees should carefully review the renewal agreement and ensure they understand all the terms and conditions before signing and paying the renewal fee.