What is the Site Selection Area designated in the Bang Cookies Site Selection Acknowledgment?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
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' 2024 Franchise Disclosure Document, the Site Selection Acknowledgment designates a geographic area called the "Site Selection Area." During the Site Selection Period, Bang Cookies will not approve any new Shop Locations on behalf of any third party within this designated area.
However, the Site Selection Acknowledgment does not mean that Bang Cookies approves the franchisee's proposed Shop Location, designates the franchisee's Designated Territory, or grants any territorial rights within the Site Selection Area. It also does not change the franchisee's obligation to secure an approved Shop Location on time, according to the terms of the Franchise Agreement.
In practice, this means that while Bang Cookies may designate a Site Selection Area for a potential franchisee, this area only provides a temporary window where Bang Cookies will not approve new locations for other franchisees. The franchisee still needs to find an approved location and the acknowledgment does not guarantee any exclusive rights or territory.