Under what condition must a Bang Cookies franchisee modify or discontinue use of materials in the Manuals?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
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17.A. PAYMENT OF AMOUNTS OWED TO FRANCHISOR
Without limitation as to any other Article or provision of this Agreement, upon expiration or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchisee to Franchisor and/or Franchisor affiliates and/or suppliers for products and services including, but not limited to, System Supplies.
17.B. CEASE OPERATIONS AND PROTECTION OF THE SYSTEM
Upon expiration, termination, or Transfer of this Agreement for any reason, Franchisee shall immediately:
- (1) Permanently cease to be a franchise owner of the Shop that was the subject of this Agreement and cease to operate such Shop under the System;
- (2) Refrain from directly or indirectly, holding oneself/itself out to any person or entity, or represent themselves/itself as a present or former Bang Cookies franchisee;
- (3) Permanently cease to use, in any manner: (a) the System including, without limitation, the Confidential Information, the Licensed Marks, the Business Management System Data, and the operations manual; (b) any methods, procedures, or techniques associated with the System in which Franchisor possesses proprietary rights or constitute Franchisor's trade secrets; (c) System Supplies, including communicating with or ordering products from Franchisor's designated suppliers and vendors of System Supplies; (d) the Approved Services and Products;
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 39–40)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, a franchisee must cease using the operations manual upon the expiration, termination, or transfer of the Franchise Agreement for any reason. This includes all parts, supplements, and copies of the operations manual.
Specifically, the franchisee must permanently cease to use the System, which includes the Confidential Information, Licensed Marks, Business Management System Data, and the operations manual. They must also stop using any methods, procedures, or techniques associated with the System in which Bang Cookies possesses proprietary rights or constitute trade secrets. This extends to System Supplies, Approved Services and Products, and any other advertising, marketing, media, and information associated with Bang Cookies.
In addition to ceasing use, the franchisee is required to return the operations manual, including all parts, supplements, and copies, as well as the Confidential Information and all other confidential materials, equipment, software, information, and property owned by Bang Cookies. However, the franchisee may retain copies of the Franchise Agreement, correspondence between Bang Cookies and the franchisee (excluding Confidential Information), and other documents required to be retained by applicable law. This ensures that upon exiting the franchise system, the former franchisee no longer has access to or uses Bang Cookies's proprietary information and operational methods.