Under the Bang Cookies franchise agreement, is the franchisee bound by substituted or modified terms?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that what constitutes Franchisor's then current Franchise Agreement shall be determined by Franchisor, in Franchisor's exclusive discretion and that, among other things, the Franchise Agreement may be modified from time to time by Franchisor and that reasonable modification and amendments to the Franchise Agreement will not alter Franchisee's obligations under this Agreement.
Franchisee agrees that Franchisor makes no representations or warranties that all other agreements with Bang Cookies Franchise LLC franchisees entered into before or after the Effective Date do or will contain terms substantially similar to those contained in this Agreement. Franchisee agrees that Franchisor may waive or modify comparable provisions of other Franchise Agreements to other System franchisees in a non-uniform manner.
- (7) If the proposed Transfer includes or entails the Transfer of this Agreement, substantially all of the assets of the Franchised Business, a controlling interest in Franchisee, or is one of a series of Transfers which in the aggregate Transfers substantially all of the assets of the Franchised Business or a controlling interest in Franchisee, then, at the election of Franchisor and upon notice from Franchisor to Franchisee, the transferee may be required to execute (and/or, upon Franchisee's request, shall cause all interested parties to execute) for a term ending on the expiration date of the original Term of this Agreement, the then current standard form Franchise Agreement offered to new franchisees of Bang Cookies Shops and any other agreements as Franchisor requires.
Such agreements shall supersede this Agreement and its associated agreement in all respects, and the terms of Franchisor's then current agreements may differ from the terms in this Agreement, provided that such agreements shall provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the franchise agreement may be subject to modifications and substitutions under certain conditions. Specifically, Bang Cookies retains the right to modify the franchise agreement from time to time, and reasonable modifications and amendments will not alter the franchisee's obligations under the agreement.
Furthermore, if a franchisee transfers their Bang Cookies business, the transferee may be required to execute the then-current standard form franchise agreement offered to new franchisees, which could supersede the original agreement. This new agreement would be for a term ending on the expiration date of the original agreement, and while the terms may differ, the new agreement must provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in the original agreement.
Bang Cookies also makes no guarantees that all franchise agreements will contain substantially similar terms, and it may waive or modify provisions of other franchise agreements in a non-uniform manner. This means that a Bang Cookies franchisee's agreement could differ from those of other franchisees, and the franchisor has the discretion to make these changes.