factual

What is the term used for the area designated by Bang Cookies for the franchisee's shop?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (8) Franchisor, in Franchisor's Reasonable Business Judgment and for any reason or no reason at all, may prohibit Franchisee from soliciting customers located outside Franchisee's Designated Territory;

  • (9) Except as otherwise provided in this Agreement including, but not limited to, the Reserved Rights, provided that, at all times Franchisee is and remains in compliance with all of the terms of this Agreement, during the Term of this Agreement, neither Franchisor nor any affiliate of Franchisor will establish or operate, or grant a franchise to any third party to establish or operate, a Shop using the Licensed Marks and System at a Shop Location that is located within Franchisee's Designated Territory, provided, that a Designated Territory has been designated and approved by Franchisor in accordance with the terms of this Agreement, but excluding Closed Markets.

Franchisee may face competition from other Bang Cookies Shops and other System franchisees

with shop locations and/or designated territories, including Shops that are located within Closed Markets and/or located adjacent to and/or within a close proximity to Franchisee's Shop Location and/or Designated Territory. Franchisee agrees that although Franchisor may disapprove of any marketing medium that is distributed and/or reaches outside of Franchisee's Designated Territory, that Franchisor is not obligated to do so and that Franchisee may face competition from other Bang Cookies Shops and System franchisees that market and promote their Bang Cookies Shop through internet, mail, public relations, and other marketing activities and mediums that are distributed to or within Franchisee's Designated Territory. Franchisee agrees that Franchisee shall not receive any compensation whatsoever if Franchisor or another System franchisee solicits customers from within Franchisee's Designated Territory; and

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

(10) The foregoing rights granted in this Article 2.A. are subject to and contingent upon each and every, term and condition of this Agreement, the rights of any prior user, and are non-exclusive and subordinate to the Reserved Rights.

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

What This Means (2024 FDD)

According to Bang Cookies' 2024 Franchise Disclosure Document, the area designated for a franchisee's shop is referred to as the "Designated Territory." The franchisor may, using reasonable business judgment, prevent a franchisee from soliciting customers outside of their Designated Territory.

Bang Cookies also commits not to establish or operate another shop, or franchise another party to do so, within the franchisee's Designated Territory during the agreement term, provided the franchisee complies with all agreement terms. This protection excludes "Closed Markets," and franchisees may still face competition from other Bang Cookies shops, including those in Closed Markets or adjacent territories.

Franchisees are not entitled to compensation if Bang Cookies or another franchisee solicits customers from within their Designated Territory. The rights granted regarding the Designated Territory are subject to the terms of the agreement, the rights of any prior user, and are non-exclusive and subordinate to the Reserved Rights.

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.