factual

Under what circumstances will a Bang Cookies franchise agreement be automatically terminated without notice or opportunity to cure?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchisor possesses the right, at Franchisor's option, to terminate this Agreement and all rights granted to Franchisee hereunder, without affording Franchisee with any opportunity to cure such default, effective upon written notice to Franchisee, or automatically upon the occurrence of any of the following events: (a) if Franchisee Abandons Franchisee's obligations under this Agreement; (b) if Franchisee for four consecutive months, or any shorter period that indicates an intent by Franchisee to discontinue Franchisee's development of Shops within the Development Area; (c) if Franchisee becomes insolvent or is adjudicated bankrupt, or if any action is taken by Franchisee, or by others against the Franchisee, under any insolvency, bankruptcy or reorganization act, or if Franchisee makes an assignment for the benefit or creditors or a receiver is appointed by the Franchisee; (d) if Franchisee fails to meet its development obligations under the Development Schedule for any single Development Period including, but not limited to, Franchisee's failure to establish, open and/or maintain the cumulative number of Bang Cookies Shops in accordance with Development Schedule; and/or (e) in the event that any one Franchise Agreement is terminated respecting any Development Shop and/or any other Franchise Agreement between Franchisor and Franchisee.

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

What This Means (2024 FDD)

According to Bang Cookies' 2024 Franchise Disclosure Document, the franchise agreement can be terminated by Bang Cookies without an opportunity to cure under certain conditions. These include if the franchisee abandons their obligations under the agreement, or if the franchisee is insolvent or becomes bankrupt.

Additionally, Bang Cookies can terminate the agreement without the chance to cure if the franchisee fails to meet development obligations under the development schedule for any single development period. This includes failing to establish, open, and/or maintain the cumulative number of Bang Cookies shops according to the development schedule.

Finally, Bang Cookies may terminate the agreement without opportunity to cure if any one franchise agreement is terminated respecting any Development Shop and/or any other Franchise Agreement between Bang Cookies and the franchisee. This means that a breach of one franchise agreement could trigger the termination of all agreements with Bang Cookies.

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.