What is the 'Closing Date' deadline for the transactions contemplated under the Beverly Anns Cookie agreement?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to purchase a Beverly Ann's Cookies franchise for the Reserved Territory during the term, you will not be able to enter into another agreement to reserve the Reserved Territory.
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- Deadline. You must sign a Franchise Agreement for your Reserved Business for the Reserved Territory no later than one year from the Effective Date ("Deadline").
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- Right of First Refusal. If you do not meet the Deadline for any reason, we will allow you a right of first refusal for the Reserved Territory ("ROFR") subject to the restrictions contained in this Section. This ROFR will shall expire on the earlier of the execution of a Franchise Agreement for the Reserved Business, or 12 months after the Deadline ("Expiration Date"). If, after the Deadline, a qualified prospective franchisee has applied to operate a Beverly Ann's Business in the Reserved Territory, then we
will provide to you (i) written notification stating the same and (ii) the then-current Franchise Disclosure Document and franchise agreement ("Franchisor's Notice"). You will have twenty days from the receipt of Franchisor's Notice to sign a Franchise Agreement for the Reserved Territory and pay the applicable fees.
You will forfeit your ROFR upon the occurrence of the earlier of the occurrence of any of the following: (1) you indicate in writing that you do not want to exercise this ROFR; and (2) you decline to exercise your rights under this Section within the twenty day period described above.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, if a prospective franchisee reserves a territory, they must sign a Franchise Agreement for that reserved territory no later than one year from the Effective Date. The Effective Date is the date the Additional Franchise Reservation Agreement is made and entered into. This one-year period is referred to as the "Deadline."
If the prospective franchisee fails to meet this Deadline, Beverly Anns Cookie will grant them a right of first refusal (ROFR) for the Reserved Territory. This ROFR expires either when a Franchise Agreement is executed for the Reserved Business or 12 months after the initial Deadline.
If, after the Deadline, Beverly Anns Cookie receives an application from another qualified prospective franchisee to operate in the Reserved Territory, the company will notify the original prospective franchisee. The original prospective franchisee then has 20 days from receipt of this notice to sign a Franchise Agreement and pay the applicable fees. Failure to act within this 20-day period, or a written indication that they do not want to exercise the ROFR, will result in forfeiture of the ROFR.