What rights does the Lease Agreement Rider grant to Bang Cookies?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
ent (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.
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- System Supplies Your Shop must maintain an initial and ongoing inventory of System Supplies. You must purchase the System Supplies, as designated by us, from us, our affiliates, and/or our designated suppliers.
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- Furniture and Fixtures Your Shop must be equipped with branded and unbranded furniture and fixtures that we designate and that meet our standards and specifications.
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, the Lease Agreement Rider grants Bang Cookies certain rights related to the franchisee's lease. Specifically, Bang Cookies has the right to be notified if the franchisee defaults on their lease. Additionally, Bang Cookies may have the right to enter the premises of the franchisee's shop.
Bang Cookies requires that the franchisee's landlord acknowledge Bang Cookies's rights as outlined in the Lease Agreement Rider, which is attached as Exhibit 4 to the Franchise Agreement. The franchisee 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 also possesses 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. This provision ensures that Bang Cookies can protect its interests in the event a franchisee's shop faces lease-related issues.