Does Bang Cookies require me to obtain their approval of my Shop Location?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
d below in this Item 11 in more detail.
Site Selection
Although you are responsible for selecting a site for your Shop Location you must obtain our approval of your Shop Location. We do not typically own or lease the real property that will serve as your Shop Location and you are responsible for all costs and expenses in locating and evaluating proposed sites and the demographic data associated with your proposed sites. Before you enter into a lease or other agreement for your Shop Location you must obtain our approval. We will provide you with site selection guidelines. If your Franchise Agreement specifies and designates a Designated Territory, your Shop Location must be located within your Designated Territory at a site that we approve. If you sign a Multi-Unit Development Agreement then each Shop Location must be located within the Development Area designated in the Multi-Unit Development Agreement and, as applicable, at sites that we approve within the Development Area. Your rights in your Shop Location must be subordinate to our rights as set forth in the Lease Agreement Rider attached as Exhibit 4 to the Franchise Agreement and the Collateral Assignment of Lease attached as Exhibit 5 to the Franchise Agreement.
Although there is no specified time limit for us to review the proposed site for your Shop Location, we will do so within a reasonable time period, not exceeding 30 days of our receipt of your written request for our review of a proposed site and your submission to us of the information and documentation that we may
request. In determining whether to approve or disapprove a proposed site for your Shop Location, factors that we take into consideration include: (a) demographic factors, traffic patterns, parking, building structures, visibility and available sign locations; (b) characteristics of the proposed site; (c) the location of your proposed site relative to your overall Designated Territory and proximity to other Shops, if your Designated Territory was previously designated;
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 29–36)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, franchisees are responsible for selecting a site for their shop location, but they must obtain Bang Cookies's approval of that location. Bang Cookies provides site selection guidelines to assist franchisees in this process. If a franchisee has a Designated Territory specified in their Franchise Agreement, the shop location must be within that territory and approved by Bang Cookies. Similarly, if a franchisee signs a Multi-Unit Development Agreement, each shop location must be within the designated Development Area and approved by Bang Cookies. Franchisees must secure a shop location and lease that Bang Cookies approves within 120 days of signing the Franchise Agreement. Failure to meet this requirement, including disapproval of a proposed location or failure to find a suitable location within the timeframe, may result in termination of the Franchise Agreement without a refund of fees, unless the default is cured within 30 days of notice from Bang Cookies.
Bang Cookies does not typically own or lease the real property for the shop location, making the franchisee responsible for all costs associated with locating and evaluating potential sites, including demographic data. Before entering into a lease or other agreement for the shop location, franchisees must obtain Bang Cookies's approval. While there is no specified time limit for Bang Cookies to review a proposed site, they aim to do so within a reasonable time, not exceeding 30 days after receiving the franchisee's written request and all required information. Factors considered by Bang Cookies in approving a site include demographic factors, traffic patterns, parking, building structures, visibility, available sign locations, characteristics of the proposed site, its location relative to the Designated Territory or Development Area, and whether the landlord approves Bang Cookies’s Lease Agreement Rider.
The time frame between signing the Franchise Agreement and opening the shop is estimated to be six to nine months. This period can be affected by factors such as evaluating and selecting a suitable site, the timeliness of submitting required information to Bang Cookies for site approval, the time taken to complete the initial training program, negotiating and obtaining an approved lease, securing third-party financing, and obtaining necessary licenses. Franchisees must open their shop within nine months from the effective date of the Franchise Agreement; otherwise, Bang Cookies may terminate the agreement without refunding any fees. Franchisees are obligated to consult with government agencies, architects, and legal professionals to ensure the shop location permits the establishment and operation of the franchised business and that all necessary licenses and authority are obtained to operate the shop.