What triggers the Management Service fee for a Bang Cookies franchise?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| Non-compliance | Actual fees, costs, and expenses | On demand | Fees, costs and expenses incurred by us as a result of your breach or noncompliance with the terms of your Franchise Agreement. |
|---|---|---|---|
| Supplier Review | Actual fees, costs, and expenses | Within 14 days of invoice | You must pay us the costs incurred by us to review and evaluate a potential supplier, product, or service that you submit to us for approval. |
| Management Service | Actual costs incurred by us | As invoiced | Payable if we elect to manage the Franchised Business due to a failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, a Management Service fee may be charged to franchisees under specific circumstances. This fee is triggered if Bang Cookies elects to manage the franchised business. This election occurs specifically when a franchisee fails to have the business managed by an authorized Managing Owner or Manager.
The fee itself covers the actual costs incurred by Bang Cookies for managing the business. The timing of payment is 'As invoiced,' meaning Bang Cookies will send an invoice to the franchisee detailing the costs, which the franchisee will then be responsible for paying. This arrangement ensures that Bang Cookies is compensated for the expenses it incurs when it steps in to manage a location due to the franchisee's failure to provide adequate management.
For a prospective Bang Cookies franchisee, this means it is crucial to ensure that the business is always managed by a qualified and authorized individual, whether it's the franchisee themselves or a designated manager approved by Bang Cookies. Failure to do so could result in Bang Cookies taking over management and charging the franchisee for all associated costs. This fee is in addition to other fees outlined in the FDD, such as the royalty fee, technology fee, and potential brand development fund fee, highlighting the importance of maintaining proper management to avoid additional expenses.