Who is responsible for covering the costs and expenses related to training programs for a Bang Cookies franchise?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
ll be responsible for the ongoing training of Franchisee's employees, staff and all other employees of the Franchised Business. Said on-going training must conform to Franchisor's standards and specifications. The Training Program shall be structured, configured and established by Franchisor from time to time. The Training Program may be structured so that it is offered and completed by Franchisee in various phases.
(2) Franchisee or, if Franchisee is a Corporate Entity, Franchisee's Managing Owner and Manager, at Franchisee's sole cost and expense, must attend and successfully complete all refresher training courses or system-wide training courses, additional training programs and seminars as Franchisor periodically may designate or offer in Franchisor's Reasonable Business Judgment. Franchisor provides instructors and training materials for those programs and seminars, but Franchisor reserves the right to assess Franchisee reasonable charges for such training. Franchisee is responsible for all
expenses Franchisee and Franchisee's employee incurs in connection with attendance and participation in these programs and seminars, including, without limitation, the cost of transportation, lodging, meals and any salaries and other wages.
- (3) Franchisee shall pay all costs and expenses incurred by Franchisee, and those attending training on behalf of Franchisee, in connection with Franchisee's participation in all Training Programs and satisfaction of Franchisee's Training Program obligations as designated by Franchisor.
- (4) Subject to Franchisor's approval and agreement, Franchisor may offer supplemental training to Franchisee at Franchisee's Shop Location or, as elected by Franchisor, remotely through online web based conferencing (hereinafter referred to as "Supplemental Training"). Franchisor, in Franchisors Reasonable Business Judgment, reserves the right to reject or approve of any request by Franchisee for Supplemental Training. If Franchisor does agree to offer and provide Supplemental Training, Franchisee shall pay to Franchisor a supplemental training fee at the rate of $300 per trainer per day plus, if applicable, reimbursement of travel and hotel accommodation expenses incurred by Franchisor (the "Supplemental Training Fee"). Franchisee agrees that in each instance where Franchisee hires a new Operating Manager, and/or Franchisor, in Franchisor's Reasonable Business Judgment, determines that Franchisee is not satisfying and/or meeting Franchisor's operational standards, then, Franchisor may require that Franchisee, and/or, as applicable, Franchisee's Operating Manager participate in and, successfully complete, Supplemental Training pay the Supplemental Training Fees designated by Franchisor. Supplemental Training Fees shall be pre-paid in advance of training and upon submission of invoice by Franchisor to Franchisee.
- (5) Franchisor, in Fran
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the franchisee is responsible for covering the costs and expenses associated with training programs. Specifically, the franchisee must cover the costs for themselves, their Managing Owner (if the franchisee is a corporate entity), and their Manager to attend and successfully complete any refresher, system-wide, or additional training courses or seminars that Bang Cookies may periodically require or offer. Bang Cookies provides the instructors and training materials but may assess reasonable charges for the training.
This means that as a Bang Cookies franchisee, you will need to budget for these training-related expenses. These expenses include transportation, lodging, meals, salaries, and other wages for yourself and your employees attending the training. This can add a significant cost to the initial investment and ongoing operational expenses of the franchise.
Furthermore, if Bang Cookies offers supplemental training, the franchisee is responsible for a supplemental training fee of $300 per trainer per day, plus reimbursement of travel and hotel accommodation expenses incurred by Bang Cookies. This supplemental training may be required if a new Operating Manager is hired or if Bang Cookies determines that the franchisee is not meeting operational standards. All individuals attending the Training Program and all Supplemental Training programs must be approved by Bang Cookies and must qualify as either an Owner or Operating Manager.
Therefore, it is crucial for prospective Bang Cookies franchisees to factor in these training costs when evaluating the financial feasibility of the franchise. Understanding the potential expenses associated with required and supplemental training programs is essential for accurate financial planning and ensuring the long-term success of the Bang Cookies franchise.