Does Bang Cookies review the terms of the lease for my Shop Location?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Lease We do not review the terms of the lease for your Shop Location but require that your landlord acknowledge our rights as set forth in the lease agreement rider attached as Exhibit 4 to the Franchise Agreement (the "Lease Agreement Rider") and that you collaterally assign the lease to us as set forth in the collateral assignment of lease attached as Exhibit 5 to the Franchise Agreement (the "Collateral Assignment of Lease").
We possess the right to disapprove of a proposed lease if the landlord refuses to sign the Lease Agreement Rider in substantially the form set forth in Exhibit 4 to the Franchise Agreement.
The Lease Agreement Rider grants certain rights to us, including our right to be notified in the event of a lease default and, potentially, for us to enter the premises of your Shop.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 24–28)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, Bang Cookies does not review the lease terms for your shop location. However, Bang Cookies requires that your landlord acknowledge their rights as outlined in the lease agreement rider, which is attached as Exhibit 4 to the Franchise Agreement. You must also collaterally assign the lease to Bang Cookies, as detailed in the collateral assignment of lease attached as Exhibit 5 to the Franchise Agreement.
Bang Cookies retains the right to disapprove a proposed lease if the landlord refuses to sign the Lease Agreement Rider in substantially the form set forth in Exhibit 4 to the Franchise Agreement. This rider grants Bang Cookies certain rights, including the right to be notified in the event of a lease default and the potential to enter the premises of your shop.
This means that while Bang Cookies doesn't scrutinize the financial or operational terms of your lease, they do ensure that the lease agreement includes specific provisions that protect their interests. As a prospective franchisee, you should carefully review Exhibits 4 and 5 of the Franchise Agreement to understand the full extent of Bang Cookies's rights and your obligations regarding the lease. You should also factor in the possibility that a landlord's refusal to sign the Lease Agreement Rider could prevent you from securing a particular location.