Under what circumstances can the Bang Cookies Franchise Agreement be modified without a written agreement signed by both parties?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
fidentiality, non-disclosure and non solicitation covenants. |
| s. | Modification of the agreement | 18.L. | Requires writing signed by you and us, except for unilateral changes that we may make to the Manuals or our unilateral reduction of the scope of a restrictive covenant that we may make in our discretion. |
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–49)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the Franchise Agreement generally requires a written agreement signed by both the franchisee and Bang Cookies to be modified. However, there are specific exceptions to this rule.
The standard Franchise Agreement can be modified unilaterally by Bang Cookies under two circumstances. First, Bang Cookies can make unilateral changes to the Manuals. Second, Bang Cookies can unilaterally reduce the scope of a restrictive covenant at their discretion.
For franchisees entering into a Multi-Unit Development Agreement with Bang Cookies, the modification terms are slightly different. In this case, the agreement can be modified without a written agreement if governing law requires a modification. Additionally, Bang Cookies retains the right to change the form of the Franchise Agreement for future shops developed under the Multi-Unit Development Agreement, as long as these changes do not alter the franchisee's obligations under the Multi-Unit Development Agreement.