factual

Does the Site Selection Acknowledgment for Bang Cookies constitute designation of the franchisee's designated territory?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchise Agreement – Exhibit 3 Site Selection Acknowledgment

Bang Cookies SITE SELECTION ACKNOWLEDGMENT

(THIS DOCUMENT DOES NOT CONSTITUTE THE APPROVAL OF A SHOP LOCATION, DOES NOT GRANT OR DESIGNATE AN OPERATING TERRITORY AND DOES NOT GRANT ANY TERRITORIAL RIGHTS)


At the time of executing a completed Schedule 1 and, thereby, approving Franchisee's proposed Shop Location, Franchisor, in Franchisor's discretion and Reasonable Business Judgment, shall designate and determine Franchisee's Designated Territory;

  • (5) If, as of the Effective Date or other appropriate periods after the Effective Date, Franchisee has not selected a proposed Shop Location that is approved by Franchisor but, Franchisee has identified an area in which Franchisee may look to secure a shop location for the Franchised Business, Franchisor, in Franchisor's discretion and Reasonable Business Judgment, may enter into the Site Selection Acknowledgment attached to this Agreement as Exhibit 3.

If executed by Franchisor, within the Exhibit 3 Site Selection Acknowledgment, Franchisor shall designate a geographic area (the "Site Selection Area") within which Franchisor, during the Site Selection Period, shall not, on behalf of any third party, approve any new Shop Location.

Franchisee agrees that the Site Selection Acknowledgment does not constitute Franchisor's approval of a proposed Shop Location, does not constitute Franchisor's designation of Franchisee's Designated Territory, does not afford Franchisee any territorial rights in or to the Site Selection Area, and does not extend and/or modify any obligation on the part of Franchisee to timely secure an approved Shop Location in accordance with the terms of this Agreement;

Source: Item 23 — RECEIPTS (FDD pages 56–245)

What This Means (2024 FDD)

According to Bang Cookies's 2024 Franchise Disclosure Document, the Site Selection Acknowledgment does not constitute designation of the franchisee's designated territory. The Site Selection Acknowledgment explicitly states that it does not grant or designate an operating territory and does not grant any territorial rights.

If a franchisee has not yet selected a shop location, Bang Cookies may, at its discretion, use the Site Selection Acknowledgment. If executed by Bang Cookies, the Site Selection Acknowledgment will designate a geographic area (the "Site Selection Area") within which Bang Cookies will not approve any new shop locations for third parties during the Site Selection Period.

The franchisee acknowledges that the Site Selection Acknowledgment does not represent approval of a shop location, does not designate a territory, and does not provide any territorial rights within the Site Selection Area. It also does not change the franchisee's obligation to secure an approved shop location in a timely manner.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.