What constitutes unconditional acceptance of the equipment for a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
n MOBILE COOKIE COMPANY, LLC, a Delaware limited liability company ("Franchisor") and [Entity Name], d/b/a ["DBA Name"], a(n) [state] [type of entity] ("Franchisee") (each, a "Party" and together, the "Parties").
BACKGROUND
- A. Franchisor and Franchisee are parties to a Franchise Agreement ("Franchise Agreement") [dated/dated as of] 7/17/2025as a result of an approved transfer of a franchised business of Franchisor ("Franchised Business").
- B. Franchisor and Franchisee desire to amend the Franchise Agreement to reflect Franchisee's status as a transferee franchisee for the Franchised Business.
- C. All capitalized terms not otherwise defined in this Transfer Addendum shall have the meanings set forth in the Franchise Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties and subject to the following terms and conditions, it is agreed as follows:
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- Franchisor and Franchisee agree that because the Franchised Business is already open and operating and being acquired via a transfer, Franchisee and Franchisor shall be relieved of performing certain pre-opening and development obligations set forth in the Franchise Agreement. Specifically:
- a. Franchisee has already acquired the truck and, if applicable, additional equipment ("Assets") under Section 13.13 of the Franchise Agreement upon transfer of the Franchised Business. Section 13.13 of the Franchise Agreement is hereby amended accordingly. If any equipment is required for the Assets as set forth in Section 13.13 of the Franchise Agreement, Franchisee agrees to purchase such items from Franchisor prior to operating the Assets.
- b. Because Franchisee is a transferee franchisee, Franchisee shall not be required to pay the Initial Franchise Fee.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Beverly Anns Cookie Franchise Disclosure Document, the franchise agreement stipulates that if a franchisee is acquiring an already operational franchised business through a transfer, the franchisee is considered to have already accepted the existing truck and any additional equipment upon the transfer of the business.
Specifically, Section 13.13 of the Franchise Agreement is amended to reflect this condition. If the transferred business requires any additional equipment, the franchisee is obligated to purchase these items from Beverly Anns Cookie prior to commencing operations with the assets. This clause ensures that the franchisee acknowledges and accepts the equipment as part of the transfer process, with a commitment to acquire any necessary additional equipment directly from the franchisor.
This arrangement streamlines the transfer process by acknowledging the existing assets of the franchise and setting clear expectations for any additional equipment needs. For a prospective franchisee, this means that when acquiring an existing Beverly Anns Cookie franchise, the equipment is accepted as-is upon transfer, but any further equipment requirements must be fulfilled by purchasing directly from the franchisor.