Who is responsible for selecting the site(s) for the Bang Cookies shop locations?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
at the time of signing the Franchise Agreement, as such initial franchise fee is set forth and defined in Section 4.2 of this Agreement as to the Development Shops.
5.3 MODIFICATIONS TO FRANCHISE AGREEMENT
Franchisee agrees that what constitutes Franchisor's then current Franchise Agreement shall be determined by Franchisor, in Franchisor's exclusive discretion and that, among other things, the Franchise Agreement may be modified from time to time by Franchisor and that reasonable modification and amendments to the Franchise Agreement will not alter Franchisee's obligations under this Agreement.
5.4 COMPLIANCE WITH FRANCHISE AGREEMENTS
Franchisee will operate the Development Shops and all other Bang Cookies Shops in strict compliance the terms and conditions of each respective Franchise Agreement.
5.5 SITE SELECTION
Franchisee will be solely responsible for selecting the site(s) for the Franchisee's Shop Locations. In accordance with the terms and conditions of each respective Franchise Agreement, Franchisee must obtain Franchisor's prior written approval as to each potential Shop Location selected by Franchisee. Franchisee will retain an experienced commercial real estate broker or salesperson who has sufficient experience in locating Shop sites to locate, acquire, purchase or lease the site for the Franchisee's Development Shops.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the franchisee is solely responsible for selecting the site(s) for their shop locations. However, this selection is not entirely independent, as the franchisee must obtain the franchisor's prior written approval for each potential location.
To aid in this process, Bang Cookies requires franchisees to retain an experienced commercial real estate broker or salesperson who has sufficient experience in locating shop sites to locate, acquire, purchase, or lease the site for the Franchisee's Development Shops. This suggests that Bang Cookies places a high value on professional guidance in site selection, likely to ensure optimal locations that align with the brand's standards and market strategy.
Bang Cookies emphasizes that the franchisor is under no obligation to assist in locating or selecting a site. The franchisee bears the responsibility of providing the franchisor with all necessary information regarding the proposed site, including details on accessibility, visibility, potential traffic flows, lease terms, and other demographic data. The franchisee cannot enter into any lease or purchase agreement until Bang Cookies has approved the site. This process ensures that all locations meet the franchisor's criteria and maintain brand consistency.