factual

Under what article of the Bang Cookies Franchise Agreement are the conditions for approval of transfer supplemented?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

eed $100,000; (2) a presumption is created that any non-compete covenant with a duration longer than 18 months is unreasonable and unenforceable; (3) a franchisor may not restrict, restrain or prohibit a franchisee from soliciting or hiring any employee of the franchisor or a franchisee of the same franchisor; (4) any contractual provision that requires an employee to adjudicate a non-competition covenant outside of Washington State is void and unenforceable.

Wisconsin FDD Amendment

Amendments to the Bang Cookies Franchise Disclosure Document

Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17 is supplemented by the addition of the following:

The Wisconsin Fair Dealership Law Title XIV-A Ch. 135, Section 135.01-135.07 may affect the termination provision of the Franchise Agreement.

STATE SPECIFIC AMENDMENTS TO FRANCHISE AGREEMENT AND, IF APPLICABLE, MULTI-UNIT DEVELOPMENT AGREEMENT

HAWAII FRANCHISE AGREEMENT AMENDMENT

Amendments to the Bang Cookies Franchise Agreement

In recognition of the requirements of the Hawaii Franchise Investment Law, the undersigned agree to the following modifications to the Bang Cookies Franchise LLC Franchise Agreement (the "Franchise Agreement"), as follows:

  1. Sub-Article 14.C.(6). Sub-article 14.C.(6), under the Article section titled "Conditions for Approval of Transfer," is supplemented by the addition of the following language:

; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Hawaii Franchise Investment Law, shall remain in force; it being the intent of this provision that the non-waiver provisions of the Hawaii Franchise Investment Law be satisfied; and

The Hawaii Franchise Investment Law provides rights to the franchisee concerning non-renewal, termination and transfer of the Franchise Agreement. If this Sub-article contains a provision that is inconsistent with the Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control.

  1. Sub-Article 15.B.(8). Sub-article 15.B.(8), under the Article section titled "Conditions for Renewal," is supplemented by the addition of the following:

; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Hawaii Franchise Investment Law, shall remain in force; it being the intent of this provision that the non-waiver provisions of the Hawaii Franchise Investment Law be satisfied; and

The Hawaii Franchise Investment Law provides rights to the franchisee concerning non-renewal, termination and transfer of the Franchise Agreement. If this subarticle contains a provision that is inconsistent with the Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control.

  1. Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Hawaii Franchise Investment Law are met independently without reference to this amendment.

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

What This Means (2024 FDD)

According to Bang Cookies's 2024 Franchise Disclosure Document, Article 14.C of the Franchise Agreement, specifically subarticle 14.C(6) under the heading "Conditions for Approval of Transfer," is supplemented by additional language in several state-specific amendments. These amendments recognize the franchise laws of Hawaii, Maryland, Minnesota and New York.

In Hawaii, Maryland, and Minnesota, the added language ensures that all rights and causes of action arising in favor of the franchisee from the provisions of their respective franchise laws remain in force. The intent is to satisfy the non-waiver provisions of these state laws. This means that franchisees in these states retain their legal rights, particularly concerning termination and transfer, regardless of what the standard Bang Cookies franchise agreement might say.

Similarly, in New York, subarticle 14.C(6) is supplemented to ensure that all rights and causes of action arising in favor of the franchisee from the provisions of New York General Business Law Sections 680-695 and related regulations remain in force. This also aims to satisfy the non-waiver provisions of New York law, reinforcing the franchisee's rights under state regulations.

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.