factual

What is the effect of the amendment on references to the GRM/GRT for Beverly Anns Cookie?

Beverly_Anns_Cookie Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. FIXED LOCATION BUSINESS. Upon execution of this Amendment, Franchisee is hereby granted the right to operate a Fixed Location Business in tandem with the existing Mobile Business under the Franchise Agreement. The Mobile Business shall remain in full force and effect and all references to the GRM/GRT shall be unaffected unless modified by this Amendment.

Source: Item 22 — CONTRACTS (FDD page 57)

What This Means (2025 FDD)

According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, an amendment to the franchise agreement allows a franchisee to operate a fixed location business in addition to their existing mobile business (GRM/GRT). The amendment specifies that unless explicitly modified within the amendment itself, all references to the GRM/GRT in the original franchise agreement remain in full effect. This means the franchisee's obligations and rights related to the mobile business continue as initially agreed upon.

This is significant for a franchisee because it clarifies that adding a fixed location does not automatically alter the terms governing their mobile unit. The franchisee must adhere to the original agreement concerning the GRM/GRT, unless the amendment introduces specific changes. This could include royalty payments, operational standards, or territory restrictions that were part of the initial franchise agreement.

For example, if the original agreement stipulated a certain percentage of gross sales as royalty for the GRM/GRT, that percentage remains unchanged unless the amendment states otherwise. Similarly, any requirements for maintaining or upgrading the mobile unit would still apply. The franchisee needs to carefully review both the original agreement and the amendment to understand their complete obligations and how they apply to each aspect of their Beverly Anns Cookie business.

This approach is fairly common in franchising, where amendments are used to address specific changes while keeping the core agreement intact. It ensures that both the franchisor and franchisee have a clear understanding of their respective rights and responsibilities as the business evolves.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.