What is the role of Bang Cookies Franchise LLC in the franchise agreement, if not a direct party?

According to the 2024 Bang Cookies Franchise Disclosure Document, Bang Cookies Franchise LLC can be a third-party beneficiary in certain agreements involving the franchisee. Specifically, in the context of a Confidentiality Agreement between a Bang Cookies franchisee (as the owner/operator of the Bang Cookies Business) and their employee or contractor, Bang Cookies Franchise LLC is explicitly named as an intended third-party beneficiary, even though they are not a direct party to the agreement.

This means that while Bang Cookies Franchise LLC does not own or manage the individual Bang Cookies Business run by the franchisee, they still have rights and protections under the Confidentiality Agreement. This is because the agreement is designed to protect the confidential information of the Bang Cookies system, which benefits the franchisor. As a third-party beneficiary, Bang Cookies Franchise LLC can enforce the terms of the Confidentiality Agreement against the franchisee's employee or contractor if the confidential information is compromised.

This arrangement ensures that the Bang Cookies system's proprietary information remains protected, even at the individual franchise level. It also highlights the interconnectedness between the franchisor and its franchisees, where the franchisor has a vested interest in how franchisees manage their business and protect confidential information. Prospective franchisees should understand that even in agreements where they are the direct party, Bang Cookies Franchise LLC may have rights and the ability to enforce those rights as a third-party beneficiary.