How does the Site Selection Acknowledgment affect a Bang Cookies franchisee's obligation to secure an approved shop location?

According to Bang Cookies's 2024 Franchise Disclosure Document, the Site Selection Acknowledgment does not change a franchisee's obligation to secure an approved shop location. The franchisee is still responsible for finding a location that meets Bang Cookies's criteria and is approved by them.

The Site Selection Acknowledgment, outlined in Exhibit 3 of the Franchise Agreement, primarily serves to designate a specific geographic area (the "Site Selection Area") where Bang Cookies will not approve any new shop locations for other parties during a defined "Site Selection Period." This provides a limited window of opportunity for the franchisee to secure a location within that area without direct competition from new Bang Cookies outlets. However, it's crucial to understand that this acknowledgment does not guarantee the franchisee any territorial rights or imply approval of a specific location.

In practical terms, even with a Site Selection Acknowledgment in place, a Bang Cookies franchisee must still actively search for and secure a suitable location that meets the franchisor's standards. They must present the proposed location to Bang Cookies for approval, and Bang Cookies retains the right to reject the location based on their business judgment. The franchisee's obligation to find an approved location remains unchanged, and failure to do so in a timely manner could have consequences under the franchise agreement. The Site Selection Acknowledgment simply offers a temporary period of reduced competition within a specific area while the franchisee searches for a site.