Under what circumstances might Bang Cookies require the franchisee's Business Management System account to be registered to or controlled by the franchisor?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
e of the availability of substitute products, supplies, inventory, apparel and/or accessories, Franchisee shall only utilize the System Supplies as designated by Franchisor and only from those suppliers approved by Franchisor. Franchisee agrees that in many instances Franchisor and/or Franchisor's affiliates may be or may become the exclusive supplier of System Supplies.
3.E. BUSINESS MANAGEMENT SYSTEM
At all times, Franchisee shall exclusively use the Business Management Systems designated by Franchisor, in Franchisor's Reasonable Business Judgment, and as may be modified, supplemented or replaced by Franchisor from time to time. Franchisee cannot substitute or replace the Business Management System in favor of any substitutes or other systems. To the extent that the Business Management System is hosted, maintained, licensed or operated by third party suppliers, Franchisee shall purchase, license and maintain such Business Management System and/or systems from such third party suppliers designated by Franchisor and subject to Franchisor's standards and specifications. To the extent that the designated Business Management Systems is/are internet or cloud-based with accounts and data, including accounts and data associated with the Franchised Business, stored off-site, Franchisor may require that Franchisee's license, and use of the Business Management System occur through accounts registered to Franchisor, controlled by Franchisor or licensed through Franchisor. To the extent that the Business Management System(s) is/are stored locally on computer systems maintained by Franchisee, then Franchisee shall provide Franchisor with internet and complete remote access to such systems. Franchisor may be and/or become the exclusive supplier and/or reseller of the Business Management System.
Franchisee shall be responsible for initial license fees, training fees and continuing monthly license fees required for use of the Business Management System as specified by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, Bang Cookies may require a franchisee's Business Management System (BMS) account to be registered to or controlled by Bang Cookies if the designated BMS is internet or cloud-based and the accounts and data, including those associated with the franchised business, are stored off-site. This condition is part of Bang Cookies's broader requirement that franchisees exclusively use the BMS designated by Bang Cookies, which Bang Cookies may modify or replace over time.
This requirement ensures that Bang Cookies has access to and control over critical business data, which is essential for maintaining brand consistency and monitoring franchisee performance. It also allows Bang Cookies to provide support and updates to the BMS more efficiently. The franchisee is responsible for initial license fees, training fees, and continuing monthly license fees for the BMS, as determined by Bang Cookies or its designated suppliers.
For a prospective Bang Cookies franchisee, this means they may not have full autonomy over their BMS account. They must use the system specified by Bang Cookies and potentially allow Bang Cookies to control the account if it is cloud-based. This could impact how franchisees access and manage their business data, as well as their ability to customize the system to their specific needs. Franchisees should clarify with Bang Cookies the extent of control Bang Cookies will have over the BMS and how this might affect their daily operations and data management practices.