Is there an option to renew or extend the Bang Cookies Multi-Unit Development Agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
ents. You should read these provisions in the agreements attached to this Disclosure Document.**
| Provision | Sections in Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 3 | Varies depending on the number of Shops to be developed and the Development Area. The agreement commences on the effective date and the term automatically expires at the earlier of the opening of the final Shop required for development, or the last day of the calendar month in which the final Shop was required to be open under the Multi-Unit Development Agreement. |
| b. | Renewal or extension of the | Not | There is no renewal of the Multi-Unit Development |
| term | applicable | Agreement. | |
| c. | Requirements for franchisee to renew or extend | Not applicable | There is no renewal of the Multi-Unit Development Agreement. |
| d. | Termination by franchisee | Not applicable | There is no option for your termination of the Multi-Unit Development Agreement. |
| e. | Termination by franchisor | Not | We can terminate without cause only if you and we mutually |
| without cause | applicable | agree, in writing, to terminate. | |
| f. | Termination by franchisor with "cause" | 3.2 | We may terminate your Multi-Unit Development Agreement with cause. |
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, there is no option to renew or extend the Multi-Unit Development Agreement. The agreement's term length varies depending on the number of shops to be developed and the development area. The agreement commences on the effective date and automatically expires at the earlier of the opening of the final shop required for development, or the last day of the calendar month in which the final shop was required to be open under the Multi-Unit Development Agreement.
This means that once the development schedule outlined in the agreement is complete or the deadline for opening all shops has passed, the Multi-Unit Development Agreement concludes without an option for renewal. A franchisee who wishes to continue expanding with Bang Cookies beyond the scope of the original agreement would need to negotiate a new development agreement with the franchisor.
This lack of renewal option places added importance on the initial terms of the Multi-Unit Development Agreement. Prospective franchisees should carefully consider the development schedule, territory size, and other key terms to ensure they align with their long-term business goals, as there is no guarantee of an extension or renewal once the initial term expires. Franchisees also lose all rights under the Multi-Unit Development Agreement upon termination or non-renewal.