What schedule must a Bang Cookies franchisee strictly adhere to when developing, opening, and operating Development Shops?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
see's first Development Shop. Franchisee's second Development Shop and all Development Shops thereafter, respectively, are to be developed and operated by Franchisee pursuant to the terms and conditions of Franchisor's then current Franchise Agreement which Franchisee must sign, on or before the earlier of: (a) The date Franchisee (subject to Franchisor's approval of the Shop Location) executes a lease for the Shop Location for each respective Development Shop; (b) The date Franchisee (subject to Franchisor's approval of the Shop Location) enters into a purchase agreement for the real estate for the Shop Location for each respective Development Shop; or (c) six months prior to the date that each respective Development Shop must be open and in operation pursuant to the Development Schedule.
4.4 DEVELOPMENT SCHEDULE
Franchisee agrees that to induce Franchisor to enter into this Agreement, Franchisee agrees to develop, establish and operate Development Shops in strict accordance with the requirements of a development schedule (the "Development Schedule"). The Development Schedule, among other things, sets forth and defines each respective measurement period / measurement periods (each, respectively, a "Development Period") and the number of Development Shops that Franchisee must establish and open (a "Newly Opened Development Shop(s)") within the respective Development Period and, the minimum number of cumulative Development Shops (the "Cumulative Development Shops") that must be open and in operation as of the last day of each applicable Development Period.
The Development Schedule is set forth in the Development Information Sheet.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, a franchisee with development rights must adhere to a strict development schedule when developing, opening, and operating multiple Bang Cookies shops (referred to as "Development Shops") within a specific geographic area. This schedule is a crucial part of the agreement, outlining the timeline and number of shops a franchisee is expected to establish. The Development Schedule is detailed in the Development Information Sheet, which is attached as Schedule A to the agreement.
The Development Schedule specifies measurement periods, called "Development Periods," and sets targets for the number of "Newly Opened Development Shops" that must be opened within each period. It also defines the "Cumulative Development Shops" that must be operational by the end of each Development Period. Franchisees must meet these requirements for the number of shops developed, established, and operating within their Development Area during each Development Period.
Bang Cookies emphasizes the importance of adhering to the Development Schedule, stating that time is of the essence. Failure to comply with the schedule can lead to immediate termination of the agreement and any future development rights. However, as long as the franchisee adheres to the Development Schedule and the terms of the Franchise Agreement, Bang Cookies will not open, operate, or license any third party to open or operate Bang Cookies shops within the Development Area. Franchisees confirm they find the Development Schedule reasonable and viable after their own investigation.