What are the specific obligations of a Bang Cookies franchisee regarding site selection (Item 9) and how do these obligations relate to the franchisor's approval process (Item 12)?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
at the time of signing the Franchise Agreement, as such initial franchise fee is set forth and defined in Section 4.2 of this Agreement as to the Development Shops.
5.3 MODIFICATIONS TO FRANCHISE AGREEMENT
Franchisee agrees that what constitutes Franchisor's then current Franchise Agreement shall be determined by Franchisor, in Franchisor's exclusive discretion and that, among other things, the Franchise Agreement may be modified from time to time by Franchisor and that reasonable modification and amendments to the Franchise Agreement will not alter Franchisee's obligations under this Agreement.
5.4 COMPLIANCE WITH FRANCHISE AGREEMENTS
Franchisee will operate the Development Shops and all other Bang Cookies Shops in strict compliance the terms and conditions of each respective Franchise Agreement.
5.5 SITE SELECTION
Franchisee will be solely responsible for selecting the site(s) for the Franchisee's Shop Locations. In accordance with the terms and conditions of each respective Franchise Agreement, Franchisee must obtain Franchisor's prior written approval as to each potential Shop Location selected by Franchisee. Franchisee will retain an experienced commercial real estate broker or salesperson who has sufficient experience in locating Shop sites to locate, acquire, purchase or lease the site for the Franchisee's Development Shops.
Accordingly, no provision of this Agreement will be construed or interpreted to impose any obligation upon Franchisor to locate a site for the Development Shops, to assist Franchisee in the selection of a suitable site for the Development Shops, or to provide any assistance to the Franchisee in the purchase or lease of the site for the Development Shops.
5.6 SITE SELECTION CRITERIA
Franchisee will not lease, purchase or otherwise acquire a Shop Locations for the Development Shops until such information as Franchisor may require regarding the proposed site has been provided to Franchisor by Franchisee and has been approved by Franchisor. Information requested by Franchisor may include, without limitation, information regarding the proposed Shop Location as to accessibility, visibility, potential traffic flows, lease terms and other demographic information. Franchisee shall not enter into any lease or purchase agreement with respect to any proposed Shop Location until Franchisor has approved the site.
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the franchisee is primarily responsible for selecting the site for their Bang Cookies shop. However, this selection is contingent upon receiving prior written approval from Bang Cookies. To facilitate this process, the franchisee must engage an experienced commercial real estate broker or salesperson to help locate, acquire, purchase, or lease the site. Bang Cookies explicitly states that they are under no obligation to assist in site selection or provide any assistance in purchasing or leasing the site.
Before a franchisee can finalize a location for their Bang Cookies shop, they must provide Bang Cookies with all required information about the proposed site. This information may include details regarding accessibility, visibility, potential traffic flows, lease terms, and other demographic data. The franchisee is prohibited from entering into any lease or purchase agreement until Bang Cookies has given its approval of the site.
The approval process is further detailed, stating that if a franchisee has not selected a location by the effective date of the agreement, they must find and secure a location that meets Bang Cookies's approval requirements. If Bang Cookies approves a proposed location after the effective date, this approval must be in writing and evidenced by Bang Cookies's execution of Schedule 1, which designates the specific shop location. Upon approving the location, Bang Cookies will also determine the franchisee's designated territory, using their reasonable business judgment.