What is the structure of the Bang Cookies development schedule, specifically how many development periods are outlined?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Franchisee agrees that, as to the Development Shops, Franchisee shall meet the requirements of the Development Schedule including, without limitation, requirements as to the number of Development Shops that must be timely developed, established, open, and in operation by Franchisee within the Development Area and as to each respective Development Period.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, franchisees who enter into a multi-unit development agreement must adhere to a development schedule. This schedule is crucial for outlining the expectations and timelines for opening multiple Bang Cookies locations within a specific territory. The development schedule includes "Development Periods," which are measurement periods during which the franchisee must open a certain number of "Development Shops." The schedule also specifies the "Cumulative Development Shops" that must be open by the end of each Development Period.
The specific details of the development schedule, including the number of Development Periods and the required number of shops to be opened within each period, are found in the "Development Information Sheet," which is attached as Schedule A to the development agreement. This sheet must be completed and signed by Bang Cookies to be effective. Franchisees are obligated to meet the requirements of the Development Schedule, and failure to do so can result in the termination of the agreement.
Prospective Bang Cookies franchisees should carefully review the Development Information Sheet to understand the specific obligations and timelines for opening multiple locations. They should also conduct their own independent investigation to ensure that the development schedule is reasonable and viable for their specific circumstances. Because the number of development periods is not specified in the excerpt, it is important for prospective franchisees to discuss the development schedule and its requirements with Bang Cookies to fully understand the expectations and potential risks involved in a multi-unit development agreement.