What is a 'Satellite Location' for a Bang Cookies franchise?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
and operate additional Bang Cookie Shops located within a close geographic range to your Bakery Location, up to two additional Shops, depending on the production capacity of your Bakery Location may, if approved by us, be established as satellite locations (each, a "Satellite Location") each, with a smaller kitchen, preparation, and baking area that is limited to baking cookies and other baked goods that are baked from dough and other baking items that are partially prepared at your Location and delivered to your Satellite Location. A Bakery Location must be located at a retail location comprising approximately 1,500 to 2,500 square feet with approximately 600 to 700 square feet dedicated to your kitchen and baking facilities. A Satellite Location must be located at a retail location comprising approximately 800 to 1,000 square feet with approximately 600 to 800 square feet dedicated to your limited kitchen preparation and baking facilities.
Whether or not a Shop qualifies as a Bakery Location and the type, number, and location of Satellite Locations that a Bakery Location may support, requires our written approval. If you are granted the right to establish multiple Shops, there is no obligation to establish your additional Shops as Satellite Locations. Unless you sign a multi-unit development agreement, there is no guarantee that we may approve or award you the right to enter into any additional Franchise Agreements. You must assume that every Shop Location that you establish (subject to our Franchise Agreement and, if applicable, multi-unit development agreement) must be established as a Bakery Location unless we, in writing, otherwise approve of a Shop qualifying as a Satellite Location. Unless otherwise noted, the disclosures contained in this Disclosure Document apply whether or not your Shop qualifies as a Bakery Location or Satellite Location.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, a 'Satellite Location' is an additional Bang Cookies shop that can be established within a close geographic range of a franchisee's primary Bakery Location. The ability to open a Satellite Location is contingent upon the production capacity of the Bakery Location and requires approval from Bang Cookies. A franchisee can open up to two Satellite Locations.
Unlike a standard Bakery Location, a Satellite Location has a smaller kitchen, preparation, and baking area. It is limited to baking cookies and other baked goods from dough and baking items partially prepared at the Bakery Location and then delivered to the Satellite Location. This means the Satellite Location relies on the main Bakery Location for some of its production needs.
In terms of size, a Bakery Location must be a retail location comprising approximately 1,500 to 2,500 square feet, with 600 to 700 square feet dedicated to kitchen and baking facilities. A Satellite Location, on the other hand, must be a retail location comprising approximately 800 to 1,000 square feet, with 600 to 800 square feet dedicated to its limited kitchen preparation and baking facilities. It's important to note that even if a franchisee is granted the right to establish multiple shops, there is no obligation to establish additional shops as Satellite Locations. Each shop is assumed to be a Bakery Location unless Bang Cookies provides written approval for it to operate as a Satellite Location.