What written promise must each Owner and spouse make to Bang Cookies during the term of the Franchise Agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
You and, if you are a Corporate Entity, each of your members, shareholders and/or partners (collectively, "Owners"), must personally guarantee all of your obligations to us under the Franchise Agreement. Each Owner and the spouse of each Owner must personally guarantee your obligations to us under the Franchise Agreement. You and each Owner and spouse must also promise in writing that, among other things, during the term of the Franchise Agreement you will not participate in any business that in any way competes with the Franchised Business, and that for 24 months after the expiration of termination of the Franchise Agreement (with said period being tolled during any periods of non-compliance), neither you nor your Owners and their spouses will participate in any competitive business located within and/or servicing customers located within your Designated Territory and a 25 mile radius surrounding your Designated Territory. Further you will not participate in any competitive business located within and/or servicing customers located within a 10 mile radius of any other Bang Cookies Shop and/or the designated territory of any other Bang Cookies Shop. Your managers and all other employees and agents with access to our confidential information will be required by us to sign a confidentiality agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 40)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, each Owner and their spouse must provide a written guarantee of the franchisee's obligations to Bang Cookies under the Franchise Agreement. This guarantee extends to a promise not to participate in any business that competes with the Bang Cookies franchised business during the term of the agreement.
Following the termination or expiration of the Franchise Agreement, this non-compete obligation continues for 24 months, with the period tolled during any non-compliance. During this time, neither the owner nor their spouse can participate in a competitive business located within the Designated Territory or within a 25-mile radius of it.
Furthermore, they are prohibited from participating in any competitive business within a 10-mile radius of any other Bang Cookies shop or its designated territory. This ensures that owners and their spouses are legally bound to uphold the terms of the Franchise Agreement and protect Bang Cookies's interests, even after the franchise relationship ends.