Under what circumstances might Bang Cookies enter into a Site Selection Acknowledgment with a franchisee?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
"Site Selection Acknowledgment" refers to and means the form "Site Selection Acknowledgment" attached to this Agreement as Exhibit 3.
Franchise Agreement – Exhibit 3 Site Selection Acknowledgment
Bang Cookies SITE SELECTION ACKNOWLEDGMENT
(THIS DOCUMENT DOES NOT CONSTITUTE THE APPROVAL OF A SHOP LOCATION, DOES NOT GRANT OR DESIGNATE AN OPERATING TERRITORY AND DOES NOT GRANT ANY TERRITORIAL RIGHTS)
WHEREAS, Franchisee has requested the right to develop and operate multiple Shops (each a "Development Shop") to be located with a defined geographical area (the "Development Area") in accordance with a development schedule that must be strictly adhered to, with each Shop within the Development Area being opened and operating utilizing the Marks and System pursuant to the terms and conditions set forth in a separate form of Franchisor's then current Franchise Agreement for Bang Cookies Shops (each, a "Franchise Agreement"); and
WHEREAS, Franchisee agrees that adherence to the terms of this Agreement, each and every Shop individual unit Franchise Agreement, Franchisor's operations manual, and Franchisor's System standards and specifications, are essential to the operation of all Bang Cookies Shops and the System as a whole.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the "Site Selection Acknowledgment" is a form attached as Exhibit 3 to the Franchise Agreement. The document itself explicitly states that it does not constitute approval of a shop location, grant or designate an operating territory, nor does it grant any territorial rights.
When a franchisee requests the right to develop and operate multiple Bang Cookies shops within a defined geographical area, known as the "Development Area", they must adhere to a development schedule. This adherence is deemed essential for the operation of all Bang Cookies shops and the overall system. The Site Selection Acknowledgment is likely used in conjunction with this process, confirming the franchisee's understanding of their responsibilities in selecting suitable locations within the Development Area and in accordance with Bang Cookies' standards.
In essence, the Site Selection Acknowledgment appears to be a formal acknowledgement by the franchisee of their responsibilities and limitations regarding site selection, particularly when they are developing multiple units. It reinforces that Bang Cookies retains control over site approval and that the franchisee understands the importance of adhering to the franchisor's standards and the franchise agreement.