Under what circumstances must the Bang Cookies shop be established as a Bakery Location?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
nchised Business may only offer and sell the Approved Services and Products.
- "Assignment of Telephone Numbers and Digital Media Accounts" refers to and means the Assignment of Telephone Numbers and Digital Media Accounts agreement attached to this Agreement as Exhibit 6.
"Bakery Location" refers to and means a Shop that is comprised of a Shop and Shop Facility that maintains full on-site production facilities including the on-site preparation of cookie dough and dough for baked goods. The configuration of a Bakery Location must meet Franchisor's standards and specifications as set forth and determined by Franchisor, in Franchisor's Reasonable Business Judgment. Unless otherwise expressly specified and approved by Franchisor in Schedule 1 to this Agreement, Franchisee's Shop must be established as a Bakery Location. Franchisor's specifications and determination as to the specifications and requirements for Bakery Locations shall be determined by Franchisor from time-to-time in Franchisor's Reasonable Business Judgment and as may be specified from time-to-time by Franchisor in the Operations Manual.
"Bang Cookies Shop(s)" shall have the meaning defined in the Recitals section of this Agreement and, without limitation to the Recitals section, the definition of "Bang Cookies Shops", shall further include, refer to and mean: every business and all businesses owned and/or operated by Franchisor, Franchisor's affiliates and/or authorized franchisees that use and/or is/are required to use the System and/or Licensed Marks, and, including, but not limited to, the Franchised Business.
"Brand Development Fund" shall have the meaning defined and set forth in Article 9.A. of this Agreement.
"Brand Development Fund Fee" shall have the meaning defined and set forth in Article 9.A. of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, a franchisee's shop must be established as a Bakery Location unless explicitly authorized otherwise by Bang Cookies in Schedule 1 of the Franchise Agreement. A Bakery Location is defined as a shop with full on-site production facilities for preparing cookie dough and dough for baked goods, meeting Bang Cookies' standards and specifications.
This means that the standard Bang Cookies franchise model involves a full-scale bakery operation where all cookie and baked good production occurs on-site. This requires a larger facility, more equipment, and a higher initial investment compared to a satellite location.
The alternative to a Bakery Location is a Satellite Location, which does not have full production facilities and relies on a Bakery Location for the supply of cookie dough and baked goods. However, a franchisee can only establish a shop as a Satellite Location if they already own and operate a shop that qualifies as a Bakery Location and if Bang Cookies expressly authorizes it. Therefore, unless a franchisee already operates a Bakery Location and receives explicit authorization, they must establish their shop as a Bakery Location.