What is the dependency between the Additional Franchise Reservation Agreement and the Franchise Agreement for a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
ISEE: Rev. 031821
EXHIBIT H-5
BEVERLY ANN'S COOKIES FRANCHISE
ADDITIONAL FRANCHISE RESERVATION AGREEMENT
| This Additional Franchise Reservation Agreement ("AFR Agreement") is made between Mobile Cookie Company, LLC ("us" or "we") and ("you") is made and entered into, 20 ("Effective Date"). |
|---|
| 1. |
| General Description of Agreement. This AFR Agreement sets out the terms and the conditions |
| under which we will reserve a Beverly Ann's Cookies |
| franchise and territory |
| (each, a "Reserved |
| Business"). |
| a. |
| In order to establish a Beverly Ann's Cookies |
| franchise, you will be required to enter into |
| a Franchise Agreement for the |
| Reserved Business, the form of which will be our then-current form |
| Franchise Agreement then being offered to new Beverly Ann's Cookies |
| franchisees (that |
| form of Franchise |
| Agreement is referred to in AFR Agreement |
| as the "Franchise Agreement"). |
| b. |
| You acknowledge and represent to us that you understand that this AFR Agreement |
| is not |
| a Franchise Agreement, and that you have no right to open a Beverly Ann's |
| Business |
| under this AFR |
| Agreement. |
| You will be permitted to open a Beverly Ann's Cookies |
| franchise |
| only if: (a) we approve you |
| to do so; (b) you and we sign a Franchise Agreement; and (c) you pay us all applicable initial fees that are |
| due under the Franchise Agreement. |
| 2. |
| Term. |
| The term of this AFR Agreement shall commence on the Effective Date and, unless |
| otherwise negotiated, terminated or extended as provided herein, shall continue until the earlier of (i) the |
| Expiration Date |
| (as defined in Section 5), or (ii) the date of execution of the Franchise Agreement for the |
| Reserved Business ("Term"). |
| 3. |
| Reserved Territory. |
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the Additional Franchise Reservation Agreement outlines the terms and conditions under which Mobile Cookie Company, LLC will reserve a Beverly Ann's Cookies franchise and territory for a prospective franchisee.
The Additional Franchise Reservation Agreement requires the franchisee to enter into a Franchise Agreement to establish a Beverly Ann's Cookies franchise. If a franchisee fails to sign a Franchise Agreement within one year from the effective date of the Additional Franchise Reservation Agreement, they will not be able to enter into another agreement to reserve the territory. However, Beverly Anns Cookie will allow the franchisee a right of first refusal for the reserved territory, which expires 12 months after the deadline or upon the execution of a Franchise Agreement.
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 applicant and provide them with the current Franchise Disclosure Document and franchise agreement. The original applicant then has twenty days from receipt of this notice to sign a Franchise Agreement and pay the applicable fees to maintain their right to the territory. The right of first refusal is forfeited if the applicant indicates they do not want to exercise it or declines to exercise their rights within the twenty-day period.