What are the requirements for the Managing Owner of a Bang Cookies franchise?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
The Franchise Agreement requires that you or, if you are a Corporate Entity, your designated managing shareholder, member or partner (your "Managing Owner") be personally responsible for the management and overall supervision of your Shop. Your Managing Owner must complete, to our satisfaction, our initial training program and be approved by us. While we recommend that your Managing Owner personally participate in the day-to-day management and on-site supervision and operations of your Shop, you may hire an operating manager to supervise and manage the day-to-day on-site operations of your Shop provided that your operating manager: (a) meets all of our minimum standards and criteria for managers; (b) completes our initial training program; and (c) signs our confidentiality agreements (an "Operating Manager"). At all times, your Shop must be managed and supervised on-site by either a Managing Owner or Operating Manager. If you own and operate multiple Shops then each Shop must be managed and supervised on-site by an Operating Manager.
You and, if you are a Corporate Entity, each of your members, shareholders and/or partners (collectively, "Owners"), must personally guarantee all of your obligations to us under the Franchise Agreement. Each Owner and the spouse of each Owner must personally guarantee your obligations to us under the Franchise Agreement. You and each Owner and spouse must also promise in writing that, among other things, during the term of the Franchise Agreement you will not participate in any business that in any way competes with the Franchised Business, and that for 24 months after the expiration of termination of the Franchise Agreement (with said period being tolled during any periods of non-compliance), neither you nor your Owners and their spouses will participate in any competitive business located within and/or servicing customers located within your Designated Territory and a 25 mile radius surrounding your Designated Territory. Further you will not participate in any competitive business located within and/or servicing customers located within a 10 mile radius of any other Bang Cookies Shop and/or the designated territory of any other Bang Cookies Shop. Your managers and all other employees and agents with access to our confidential information will be required by us to sign a confidentiality agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 40)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the Franchise Agreement mandates that the franchisee or their designated Managing Owner, if the franchisee is a Corporate Entity, must be personally responsible for the management and overall supervision of the Bang Cookies Shop. The Managing Owner must complete Bang Cookies' initial training program to the franchisor's satisfaction and be approved by them. While the franchisor recommends that the Managing Owner participate in the day-to-day management and on-site supervision, the franchisee can hire an Operating Manager to handle these tasks, provided the Operating Manager meets Bang Cookies' minimum standards, completes the initial training program, and signs confidentiality agreements.
At all times, the Bang Cookies Shop must be managed and supervised on-site by either the Managing Owner or an Operating Manager. If a franchisee owns and operates multiple Shops, each Shop must be managed and supervised on-site by an Operating Manager. This ensures that each location has dedicated oversight, maintaining the quality and consistency of operations.
Furthermore, all Owners, including members, shareholders, and partners of a Corporate Entity, must personally guarantee all obligations to Bang Cookies under the Franchise Agreement. Each Owner and their spouse must also sign a written promise not to participate in any business that competes with the Franchised Business during the term of the Franchise Agreement and for 24 months after its expiration or termination within the Designated Territory and a 25-mile radius. They are also prohibited from participating in any competitive business within a 10-mile radius of any other Bang Cookies Shop. This non-compete clause is designed to protect Bang Cookies' market share and confidential information. Managers and other employees with access to confidential information must also sign a confidentiality agreement.