What rights are reserved by Bang Cookies?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor on behalf of itself, its affiliates and its assigns retains all rights, on any and all terms and conditions that Franchisor deems advisable and without any compensation or consideration to Franchisee to engage in the following activities (the "Reserved Rights"): (a) operate and grant to others the right to operate a Franchised Business, Bang Cookies Shop and/or other shops using the System and Licensed Marks at locations outside Franchisee's Designated Territory; (b) acquire or merge with or otherwise affiliate with one or more businesses of any kind, including businesses that are Competitive Businesses, and after such acquisition, merger or affiliation to own and operate and to franchise or license others to own and operate and to continue to own and operate such businesses, including Competitive Businesses (but not utilizing the Licensed Marks) within Franchisee's Designated Territory; (c) be acquired by or merge with or otherwise affiliate with one or more businesses of any kind, including businesses that are Competitive Businesses, even if such business or businesses presently or, in the future, own and operate and franchise or license others to own and operate such businesses, including Competitive Businesses (but not utilizing the Licensed Marks) within Franchisee's Designated Territory; (d) use the Licensed Marks and System to distribute the Approved Services and Products or products and services similar to the Approved Services and Products in Alternative Channels of Distribution within or outside Franchisee's Designated Territory; (e) operate and grant to others the right to operate a Bang Cookies Shop at Captive Markets, both within and outside Franchisee's Designated Territory; and (f) use the Licensed Marks and System and to license others to use the Licensed Marks and System to engage in all other activities not expressly prohibited by this Agreement. Franchisor reserves the right to offer Franchisee(s) the right to service and or be an approved supplier of other franchisees in and outside the Territory, provided, that Franchisee agreed to the Franchisor provided terms.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, Bang Cookies retains specific rights regarding the operation and expansion of the franchise. These reserved rights allow Bang Cookies to operate or grant others the right to operate a Bang Cookies shop outside a franchisee's designated territory. This means that while a franchisee may have a specific area, Bang Cookies can still expand elsewhere without compensating the franchisee.
Bang Cookies also reserves the right to engage in business activities, such as merging with or acquiring other businesses, including those that might be considered competitive. They can continue to operate or franchise these businesses, even within a franchisee's territory, as long as they do not use Bang Cookies' licensed marks. Additionally, Bang Cookies can use their trademarks and system to distribute approved products through alternative channels of distribution, regardless of whether it's within or outside a franchisee's designated territory.
Furthermore, Bang Cookies can operate or allow others to operate Bang Cookies shops in captive markets, both within and outside a franchisee's territory. Finally, Bang Cookies retains the right to use their trademarks and system for any activities not explicitly prohibited in the franchise agreement. Bang Cookies also reserves the right to offer franchisees the opportunity to service or become approved suppliers for other franchisees, both inside and outside their territory, provided the franchisee agrees to the terms set by Bang Cookies.