Does the definition of 'Competitive Business' for Beverly Anns Cookie include businesses that operate from a kiosk?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
"Competitive Business" means any business that: (i) operates as a mobile or temporary location vendor primarily serving food and/or beverages or selling retail merchandise or services from a vehicle, kiosk or other moveable property; (ii) sells or offers to sell products or services that are the same as or similar to the type of products sold by (A) the Franchised Business as the concept evolves over time; including but not limited to cookies and ice cream or similar products, or (B) us, our affiliates or our or their respective franchisees or licensees including without limitation, as of the date of this Franchise Agreement, shaved ice, blended beverages, snow cones, ice cream, frozen desserts, coffee, tea, hot or cold beverages; (iii) provides or offers to provide services the same as or similar to the type of services sold by you; or (iv) any business that grants franchises or licenses to others to operate the types of businesses specified in subparagraphs (i) through (iii) above, but excludes a Franchised Business operating under a franchise agreement with us or our affiliates. A Competitive Business shall not include ownership of up to five percent (5%) of any publicly held company or mutual fund that owns, operates, has an interest in, or controls any business that otherwise would meet the definition of a Competitive Business.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the definition of a 'Competitive Business' does include businesses that operate from a kiosk. Specifically, the FDD states that a 'Competitive Business' includes any business that operates as a mobile or temporary location vendor primarily serving food and/or beverages or selling retail merchandise or services from a vehicle, kiosk, or other moveable property.
This definition is important for prospective franchisees because it outlines the types of businesses that Beverly Anns Cookie would consider competitive, which could impact a franchisee's ability to engage in other business ventures during and after their franchise agreement. The definition extends beyond just direct competitors selling the exact same products; it also includes businesses selling similar products or services.
Furthermore, the definition includes businesses that grant franchises or licenses to others to operate similar businesses. However, it excludes a Franchised Business operating under a franchise agreement with Beverly Anns Cookie or its affiliates. This clause ensures that franchisees are restricted from operating or having an interest in competitive businesses, but it also allows them to own up to 5% of a publicly held company or mutual fund that might own or operate a competitive business.
In summary, the broad definition of 'Competitive Business' in the Beverly Anns Cookie franchise agreement is designed to protect the brand's market position and prevent franchisees from engaging in activities that could draw business away from the franchise system. Franchisees should carefully consider these restrictions and how they might impact their future business opportunities.