Under what conditions can the Bang Cookies Multi-Unit Development Agreement be modified?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| q. | Non-competition covenants during the term of the franchise | Not applicable | Not applicable as to Multi-Unit Development Agreement. However, each Shop developed pursuant to Multi-Unit Development Agreement will be subject to non-competition covenants set forth in each respective Franchise Agreement. |
|---|---|---|---|
| r. | Non-competition covenants after the franchise is terminated or expires | Not applicable | Not applicable as to Multi-Unit Development Agreement. However, each Shop developed pursuant to Multi-Unit Development Agreement will be subject to non-competition covenants set forth in each respective Franchise Agreement. |
| s. | Modification of the agreement | 5.3, 7.11 | Only by written agreement between you and us or if governing law requires a modification. We can change the form of the Franchise Agreement for future Shops which will not alter your obligations under the Multi-Unit Development Agreement. |
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 Multi-Unit Development Agreement can only be modified under specific conditions. The agreement can be modified only through a written agreement signed by both Bang Cookies and the franchisee. Additionally, modifications may be required if mandated by governing law.
Bang Cookies retains the right to unilaterally change the form of the Franchise Agreement for future shops without altering the franchisee's obligations under the Multi-Unit Development Agreement. This means that while the core terms of the development agreement remain fixed, the specific terms of individual franchise agreements for subsequent locations may evolve.
This provision ensures that any changes to the Multi-Unit Development Agreement are mutually agreed upon and documented, protecting both parties. However, franchisees should be aware that Bang Cookies can update the Franchise Agreement for new locations, which could impact the operational details of future Bang Cookies stores developed under the agreement.