Are there any exceptions to the requirement that modifications to the Bang Cookies Franchise Agreement must be in writing and signed by both parties?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
fidentiality, non-disclosure and non solicitation covenants. |
| s. | Modification of the agreement | 18.L. | Requires writing signed by you and us, except for unilateral changes that we may make to the Manuals or our unilateral reduction of the scope of a restrictive covenant that we may make in our discretion. |
|---|---|---|---|
| t. | Integration/merger clauses | 18.M. | Only the terms of the Franchise Agreement and schedules to the Franchise Agreement and the respective signed exhibits to the Franchise Agreement are binding, subject to state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–49)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, modifications to the standard Franchise Agreement generally require a written agreement signed by both the franchisee and Bang Cookies. However, there are specific exceptions to this rule. Bang Cookies can unilaterally make changes to the Manuals without requiring the franchisee's signature. Additionally, Bang Cookies can unilaterally reduce the scope of a restrictive covenant at their discretion, without needing a written agreement signed by the franchisee.
For franchisees considering a Multi-Unit Development Agreement with Bang Cookies, the rules for modifications are slightly different. In this case, modifications can be made only by a written agreement between the franchisee and Bang Cookies or if governing law requires a modification. Bang Cookies retains the right to change the form of the Franchise Agreement for future shops developed under the Multi-Unit Development Agreement, but these changes will not alter the franchisee's obligations under the existing Multi-Unit Development Agreement.
These exceptions are important for prospective franchisees to understand. While most changes to the Franchise Agreement require mutual written consent, Bang Cookies retains the power to make certain unilateral changes, particularly concerning the Manuals and restrictive covenants. Franchisees should carefully review the scope of these potential unilateral changes and understand how they might impact their business operations. For Multi-Unit Development Agreements, franchisees should be aware that while the core agreement remains stable, the form of the Franchise Agreement for future shops can be altered by Bang Cookies.