What constitutes 'good cause' for Beverly Anns Cookie to refuse a transfer of ownership of a franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
Whenever this Franchise Agreement requires our approval, you must make a timely written request for approval, and the approval must be in writing in order to bind us. Except as otherwise expressly provided in this Franchise Agreement, if we fail to approve any request for approval within the required period of time, we shall be deemed to have denied your request. If we deny approval and you seek legal redress for the denial, the only relief to which you may be entitled is to acquire our approval. Except where this Franchise Agreement states that we may not unreasonably withhold our approval or consent, we may withhold such approval or consent, in our sole discretion. You are not entitled to any other relief or damages for our denial of approval.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
I am unable to provide specific examples of what Beverly Anns Cookie would consider "good cause" to refuse a transfer of ownership, according to the excerpts from the 2025 Franchise Disclosure Document. The document does outline general transfer conditions and restrictions. Specifically, the FDD states that unless explicitly stated otherwise, Beverly Anns Cookie may withhold approval or consent for a transfer in its sole discretion.
However, the Franchise Agreement stipulates that Beverly Anns Cookie's approval is required for any changes to the franchisee's Company Documents, and that such approval will not be unreasonably denied or withheld if the changes do not prevent the franchisee from fulfilling their obligations under the Franchise Agreement. This suggests that there are some limitations to the franchisor's discretion regarding approvals related to company documents.
A prospective franchisee should ask Beverly Anns Cookie for a comprehensive list of conditions that would constitute "good cause" for denying a transfer. Understanding these conditions is crucial for making informed decisions about the future sale or transfer of their franchise.