What are the three conditions that trigger the signing of the then-current Bang Cookies Franchise Agreement for the second and subsequent Development Shops?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
For each Bang Cookies Shop owned, developed and opened for business by the Franchisee in the Development Area, Franchisee must execute Franchisor's then current standard Franchise Agreement. A then current standard Franchise Agreement must be executed by the Franchisee for each and each Development Shop on or before the earlier of: (a) the date Franchisee (subject to Franchisor's approval of the Shop Location) executes a lease for the Shop Location for each respective Development Shop; (b) the date Franchisee (subject to Franchisor's approval of the Shop Location) enters into a purchase agreement for the real estate for the Shop Location for each respective Development Shop; or (c) six months prior to the date that each respective Development Shop must be open and in operation pursuant to the Development Schedule.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, a franchisee must execute the then-current standard Franchise Agreement for each Development Shop within their Development Area. This agreement must be signed on or before the earliest of three conditions. These conditions dictate when the franchisee must formally commit to the terms outlined in Bang Cookies's standard Franchise Agreement for each shop beyond the first.
The first condition is the date the franchisee executes a lease for the Shop Location, subject to Bang Cookies's approval of the location. This means that once a lease agreement is finalized for a specific location, the franchisee must also sign the Franchise Agreement. The second condition is the date the franchisee enters into a purchase agreement for the real estate of the Shop Location, again subject to Bang Cookies's approval. Similar to the lease agreement, finalizing a real estate purchase triggers the requirement to sign the Franchise Agreement.
The third condition is six months prior to the date that each respective Development Shop must be open and in operation according to the Development Schedule. This provides a deadline, ensuring the Franchise Agreement is in place well before the shop's planned opening. This condition acts as a backstop, preventing delays in signing the Franchise Agreement even if lease or purchase agreements are not yet finalized six months before the scheduled opening. This ensures Bang Cookies has ample time to prepare and support the new location.