Under what conditions will Bang Cookies charge a management service fee?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| Non-compliance | Actual fees, costs, and expenses | On demand | Fees, costs and expenses incurred by us as a result of your breach or noncompliance with the terms of your Franchise Agreement. |
|---|---|---|---|
| Supplier Review | Actual fees, costs, and expenses | Within 14 days of invoice | You must pay us the costs incurred by us to review and evaluate a potential supplier, product, or service that you submit to us for approval. |
| Management Service | Actual costs incurred by us | As invoiced | Payable if we elect to manage the Franchised Business due to a failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, a management service fee may be charged to a franchisee under specific circumstances. Bang Cookies will charge this fee if they elect to manage the franchised business. This election occurs specifically when the franchisee fails to have the business managed by an authorized Managing Owner or Manager. The fee covers the actual costs incurred by Bang Cookies for providing this management service.
The management service fee is not a fixed amount but rather is based on the actual costs that Bang Cookies incurs while managing the business. This means the fee can vary depending on the complexity and duration of the management services required. The franchisee will be invoiced for these costs, and payment is due as invoiced.
This condition highlights the importance of having a qualified manager in place for a Bang Cookies franchise. Franchisees need to ensure they have either an approved Managing Owner or Manager to avoid the potential imposition of this management service fee. The fee is designed to cover Bang Cookies's expenses when they must step in to manage a store due to the franchisee's failure to provide adequate management, so maintaining proper management is crucial for controlling costs.